Question

Match each term below with its corresponding real-world example.

1Liability
a)The jewelry someone
owns
2Asset
b)The amount of credit card
debt a person has
3Equity
c)A person's total financial
Value​

Answer 1

The jewelry someone owns would be an asset, as it is adding value to someone’s economic portfolio.
The amount of credit card debt someone has could be a liability, as it is a danger to their economic well-being.
Lastly, a person’s total financial value would be their equity