Question

Which of the following increases liabilities but not assets?

a.
Taking out a loan to buy a new car
b.
Taking out a loan to go on vacation
c.
Using a credit card to buy a computer
d.
Paying off a student loan

Answer 1

I think the most approximate answer would be B. As this would increase his/her liabilities but totally NOT assets. The best way, is that you should manage to have more assets than liabilities, in order to go and enjoy your vacation.




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