Brandon owes his brother $120. He has a stamp collection worth $1,250 and he has $300 in a bank account. He also has a skateboard worth $95. Which are Brandon's assets?

• A. the stamp collection, the bank account, and the skateboard
• B. the stamp collection and the car
• C. the skateboard and the bank account
• D. the mortgage

Answer: (A)

Identifying assets means focusing on items you own that have value and can be turned into cash or used for your benefit. Brandon’s assets are the stamp collection, the bank account, and the skateboard. Each of these is something of value he owns and could liquidate if needed. The $120 he owes to his brother is a liability, not an asset, because it represents money he must pay. A mortgage would also be a liability, not part of his assets. So the three items of value that Brandon owns in this scenario are the stamp collection, the bank account, and the skateboard (these total $1,645 if you sum their values).