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Colin listed his assets and liabilities on a personal balance sheet. Colin’s Balance Sheet (August 2013) Assets Liabilities cash $1,500 credit card $500 stocks $800 rent $800 car $5,000 car loan $1,200 coin collection $1,200 student loan $5,000 Total Total Which statement is true about the total assets and the total liabilities?

Respuesta :

The correct answer is "The total of the assets is greater than the total of the liabilities."

Which is choice B.

The statement of true would be the total of the assets is greater than the total of the liabilities. Thus, option (b) is correct.

What is liability?

The term “liability” refers to a company's indebtedness to third-party creditors. The obligations include notes payable, bank debt, accounts payable, wages payable, accrued expenses, and taxes payable. Liabilities are classified as current, non-current, or contingent.

The statement of affairs of Colin’s Balance Sheet for the year ended August 2013.

Asset are included:-

  • cash = $1,500
  • stocks= $800
  • car = $5,000
  • coin collection = $1,200

Liabilities are included:-

  • credit card = $500
  • rent = $800
  • car loan = $1,200
  • student loan = $5,000

Assets total to = cash (1500) + stocks (800) + car  (5000) + coin collection (1200)

=8500

Liabilities total to = credit card (500) + rent  (800) + car loan (1200) + student loan (5000)

= 7500

They find that total of assets is 8500 and total of liabilities is 7500.

Therefore, option (b) is correct.

Learn more about on liabilities, here:

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The options missing are given to the question:-

  • The total of the assets and the liabilities are the same.
  • The total of the assets is greater than the total of the liabilities.
  • The total of the assets is less than the total of the liabilities.
  • The total of the assets cannot be compared to the total of the liabilities.

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