Samantha has the following transactions: o She purchases $5,000 worth of a mutua

Question

Samantha has the following transactions:
o She purchases $5,000 worth of a mutual fund with cash from her savings account.
o She spends $15,000 on a vacation with cash from her money market account
o She spends $10,000 on new furniture, and uses her credit card to make the purchase.


What is the combined impact of these transactions on her net worth?

A.$15,000 decrease.

B.$6,000 decrease.

C.$15,000 increase.

D.$6,000 increase.

A.$15,000 decrease.

B.$6,000 decrease.

C.$15,000 increase.

D.$6,000 increase.

Explanation / Answer

the first transaction has no impact

second transaction is a net outflow of 15000

as asset and a liability is created so net impact is 0

A.$15,000 decrease

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