Question

Place the following terms into a category of either Assets or Liabilities

Answer 1

Answers:

`\begin{array}c \cline{1-2}\textbf{Asset} & \textbf{Liability}\\\cline{1-2}\text{Home} & \text{Student Loan}\\\text{Boat} & \text{Mortgage}\\\text{Checking Account} & \text{Credit Card Debt}\\\text{Stocks} & \text{Car Payment}\\\text{Retirement Account} & \\\text{Car} & \\ \cline{1-2}\end{array}`

Step-by-step explanation:

Cash, or stuff that can be turned into cash, is considered an asset. For example, a home is an asset since it can be sold for cash.

A mortgage on the other hand is a liability since it's something you have to pay off. Liabilities are basically any type of loan.

Net worth = (total assets) - (total liabilities)