Question

Dante listed his assets and liabilities on a personal balance sheet.

Dante’s Balance Sheet (August 2013)
Assets
Liabilities
cash
$900
credit card
$4,000
investments
$1,100
student loan
$1,000
house
$150,000
mortgage
$100,000
car
$8,000
car loan
$5,000
Total

Total


Which statement is true about the value of Dante’s assets and liabilities?
He has $50,000 more in assets than in liabilities.
He has $50,000 more in liabilities than in assets.
He has $110,000 more in liabilities than in assets.
He has $160,000 more in assets than in liabilities.

Answer 1

Assets total = $900 + $1,100 + $150,000 + $8,000 = $160,000.
Liabilities total = $4,000 + $1,000 + $100,000 + $5,000 = $110,000.
Difference = $160,000 − $110,000 = $50,000.

He has $50,000 more in assets than in liabilities.