On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022? Select one: a. Net worth has increased by $3,000. b. Net worth has decreased by $3,000. c. Net worth may go up or down depending on the time of car delivery, d. Net worth has not changed.
On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022? Select one: a. Net worth has increased by $3,000. b. Net worth has decreased by $3,000. c. Net worth may go up or down depending on the time of car delivery, d. Net worth has not changed.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.1P
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![On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan
with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022?
Select one:
a. Net worth has increased by $3,000.
b. Net worth has decreased by $3,000.
c. Net worth may go up or down depending on the time of car delivery.
d. Net worth has not changed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff54002f3-a6ac-4359-8c66-58264ca1743c%2Ff51287e8-66c9-40c7-b7f8-7b3c8b8183d2%2Fzt3t7xl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan
with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022?
Select one:
a. Net worth has increased by $3,000.
b. Net worth has decreased by $3,000.
c. Net worth may go up or down depending on the time of car delivery.
d. Net worth has not changed.
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