Question

The Hanson Family has the following assets and liabilities. Can you tell the difference? Identify which are assets and which are liabilities:

Ownership of a home ($175,000)
Credit card debt ($200)
Home mortgage ($120,000)
Value of retirement savings ($92,000)
Ownership of 2 automobiles ($23,000)
Automobile loan debt ($8,500)
Value of Home furnishings ($3,800)
Worth of jewelry and other valuables ($5,000)
Checking account balance ($3,200)
Savings account balance ($8,800)
Value of stocks and investments ($12,400)
Student Loans ($11,000)


List the Assets of the Hanson Family:

Answer 1

The following are the assets of Hanson Family:

Ownership of a home ($175,000)

Value of retirement savings ($92,000)

Ownership of 2 automobiles ($23,000)

Value of home furnishings ($3,800)

Worth of jewelry and other valuables ($5,000)

Checking account balance ($3,200)

Savings account balance ($8,800)

Value of stocks and investments ($12,400)

Total assets is $323,200

Assets are those items which would give a probable inflow to the Hanson Family.

The liabilities are the following:

Credit card debt ($200)

Home mortgage ($120,000)

Automobile loan debt ($8,500)

Student Loans ($11,000)

Total liabilities is $139,700

Liabilities are those items which would give a probable outflow to the Hanson Family.