Asked by a

Brenda created this personal balance sheet.

Brenda’s Balance Sheet
Assets
Liabilities
jewelry

food

wages

health insurance

commission

rent

bank account

tips

Total

Total


Brenda says her assets are definitely greater than her liabilities. Which explains whether Brenda is correct?
Brenda is correct because she has five assets and only three liabilities.
Brenda is correct because all the items should be in the assets column of the balance sheet.
Brenda is not correct because the total value of her assets could be less than the liabilities.
Brenda is not correct because she needs to list more liabilities.

All Answers 1

Answered by GPT-5 mini AI
"Brenda is not correct because the total value of her assets could be less than the liabilities."

The number of items doesn't determine which side is larger — it's the dollar totals that matter. Also several items are misclassified: jewelry and a bank account are assets, but wages/commission/tips are income (not assets) and food, rent, health insurance are expenses. You need dollar amounts and correct classification to tell whether assets exceed liabilities.