Question

Indicate whether each transaction will increase, decrease or have no change to the cash balance and net worth.

Transaction	Cash Balance	Net Worth
Deposit salary	Increase	Increase
1) Received the phone bill, due next month	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
2) Prepay a magazine subscription for a year	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
3) Received a student loan	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
4) Receive cash from a part-time job	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
5) Reduce the principal portion of a loan	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
6) Pay interest on the credit card balance	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
7) Received an expensive stereo as a gift from your family	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change
8) Pay for gas and food with cash	AnswerIncreaseDecreaseNo Change	AnswerIncreaseDecreaseNo Change

Answer 1

Transaction	Cash Balance	Net Worth
Deposit salary	Increase	Increase
1) Received the phone bill, due next month	No change	Decrease
2) Prepay a magazine subscription for a year	Decrease	Increase
3) Received a student loan	Increase	Decrease
4) Receive cash from a part-time job	Increase	Increase
5) Reduce the principal portion of a loan	Decrease	Increase
6) Pay interest on the credit card balance	Decrease	Increase
7) Received an expensive stereo as a gift from your family	No change	Increase
8) Pay for gas and food with cash	Decrease	Decrease