Question
Lara is developing a personal financial statement. She has determined that she has a $6,000 credit card balance, $1,000 in savings, $20,000 in investments, a $40,000 balance on her mortgage, and $3,000 in a retirement account. Based on this information, what would be a liability on Lara’s personal financial statement?
(1 point)
Responses
$1,000 in savings
$1,000 in savings
$6,000 in credit cards
$6,000 in credit cards
$3,000 in retirement accounts
$3,000 in retirement accounts
$20,000 in investments
(1 point)
Responses
$1,000 in savings
$1,000 in savings
$6,000 in credit cards
$6,000 in credit cards
$3,000 in retirement accounts
$3,000 in retirement accounts
$20,000 in investments
Answers
GPT-4o mini
In a personal financial statement, liabilities are debts or obligations that an individual owes.
Based on the information provided, the only item that qualifies as a liability is:
**$6,000 in credit cards**
The credit card balance is a debt that Lara must pay back, making it a liability. Other items listed, such as savings, investments, and retirement accounts, are considered assets.
Based on the information provided, the only item that qualifies as a liability is:
**$6,000 in credit cards**
The credit card balance is a debt that Lara must pay back, making it a liability. Other items listed, such as savings, investments, and retirement accounts, are considered assets.