Question
Laura could sell her car for $18,000, and she owes $5,500 on it. Which statement best describes how this situation affects her net worth?
a. Laura has an $18,000 asset and a $5,500 liability.
b. Laura has a $15,500 asset and an $18,000 liability.
c. Laura's car is considered a liability only because she still owes money on it.
d. Laura's car is considered an asset only because it is worth more than she owes.
a. Laura has an $18,000 asset and a $5,500 liability.
b. Laura has a $15,500 asset and an $18,000 liability.
c. Laura's car is considered a liability only because she still owes money on it.
d. Laura's car is considered an asset only because it is worth more than she owes.
Answers
GPT 3.5
a. Laura has an $18,000 asset and a $5,500 liability.