Question

The money in your checking and savings accounts, IRAs, stocks and bonds are all considered to be your total:

Select one:
a. assets
b. debt
c. fortune
d. liabilities

Answer 1

The checking and savings accounts, IRAs, stocks, and bonds are all part of an individual's total assets. In accounting, a T-account is used to differentiate assets from liabilities and the net worth is determined by subtracting liabilities from assets.

Step-by-step explanation:

The money in your checking and savings accounts, IRAs, stocks, and bonds are considered to be your total assets. A T-account is an accounting tool that separates a firm's assets on the left from its liabilities on the right. Net worth or bank capital is calculated by subtracting total liabilities from total assets. In the case of a bank, assets would include financial instruments such as reserves, loans made by the bank, and government securities. Liabilities include deposits made by customers which the bank owes back to them.