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The following table shows the assets and liabilities of the Smith family in 2005 and 2009.
2005
home valued at $200,000
mortgage of $30,000
car valued at $25,000
car loan of $8,000
2009
home valued at $180,000
home equity loan of $18,000
car valued at $18,000
boat valued at $20,000
personal loan of $5,000
Based on the table, which of the following is true?
a. From 2005 to 2009, both assets and liabilities decreased.
b. From 2005 to 2009, both assets and liabilities increased.
c. From 2005 to 2009, assets decreased and liabilities increased.
d. From 2005 to 2009, assets increased and liabilities decreased.

Respuesta :

sheylaiornelas

Answer:

A. From 2005 to 2009, both assets and liabilities decrease.

Step-by-step explanation:

I just took the test and it was correct

From 2005 to 2009, both Assets and Liabilities decreased.

We have - A table showing the assets and liabilities of smith family in year 2005 and 2009.

We have to estimate, whether the smith family has acquired more assets or liabilities from the year 2005 to 2009.

What do you understand by Assets and Liabilities?

Assets are the items that an individual own in order to extract some economic benefit from it in the future.

Liability includes the money, services or items that you owe to other person. Example : Loan, mortgage etc.

In the question given -

  • Assets are : Home value, Car value, boat value.
  • Liabilities are : Car loan, Mortgage, Equity loan, personal loan.

In the year 2005 :

  • Assets : $2,25,000.
  • Liabilities : $38,000.

In the year 2009 :

  • Assets : $2,18,000.
  • Liabilities : $23,000.

Hence, it can be seen from the above figures that - From 2005 to 2009, both Assets and Liabilities decreased.

To solve more questions on estimating the Assets and Liabilities owned in a specific amount of time, visit the following link - https://brainly.com/question/3224330?referrer=searchResults

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