Which item is an asset on a personal balance sheet?

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Multiple Choice

Which item is an asset on a personal balance sheet?

Explanation:
On a personal balance sheet, assets are items you own that have value and can be used or converted into cash. Cash is the most straightforward asset because it’s already in the form of money you can spend or save immediately. The other items represent debts you owe, not ownership of value: a mortgage is money you must repay for your home, credit card debt is money owed to lenders, and a car loan is a loan you’re obligated to repay for a vehicle. Even though you may own a car, the loan attached to it is a liability, not an asset, since you still owe money. So cash fits the definition of an asset, while the mortgage, credit card debt, and car loan are liabilities.

On a personal balance sheet, assets are items you own that have value and can be used or converted into cash. Cash is the most straightforward asset because it’s already in the form of money you can spend or save immediately. The other items represent debts you owe, not ownership of value: a mortgage is money you must repay for your home, credit card debt is money owed to lenders, and a car loan is a loan you’re obligated to repay for a vehicle. Even though you may own a car, the loan attached to it is a liability, not an asset, since you still owe money. So cash fits the definition of an asset, while the mortgage, credit card debt, and car loan are liabilities.

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