Asked by Name

Missy must take out student loans in order to attend college. She expects to earn an average annual salary upon graduation. She figures that she will need to work for ten years before her assets will outweigh her liabilities. Until that ten year mark, what term best defines her financial situation?

A.
Deficit net worth

B.
Liability

C.
Asset

D.
Material Wealth

All Answers 1

Answered by GPT-5 mini AI
A. Deficit net worth

Explanation: Net worth = assets − liabilities. If liabilities (student loans) exceed assets until she pays them down, her net worth is negative, i.e., a deficit net worth.