To correctly differentiate between assets and liabilities, it's important to understand the definitions of each:
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Assets are resources owned by an individual that have economic value and can provide future benefits. Common examples include cars, homes, savings bonds, and stocks.
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Liabilities are obligations or debts that an individual owes to others. This includes items like credit card debt, tax bills, leased cars, or mortgaged homes.
Now let's analyze the tables:
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First Table:
- Assets: leased car, mortgaged home, credit card debt, tax bill (incorrect because credit card debt and tax bill are liabilities)
- Liabilities: car, home, savings bond, stocks (incorrect because car, home, savings bond, and stocks are assets)
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Second Table:
- Assets: car, home, credit card debt, tax bill (incorrect because credit card debt and tax bill are liabilities)
- Liabilities: leased car, mortgaged home, savings bond, stocks (incorrect because leased car and mortgaged home are liabilities, but savings bond and stocks are assets)
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Third Table:
- Assets: leased car, mortgaged home, savings bond, stocks (incorrect because leased car and mortgaged home are liabilities)
- Liabilities: car, home, credit card debt, tax bill (incorrect because car and home are assets)
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Fourth Table:
- Assets: car, home, savings bond, stocks (correct)
- Liabilities: leased car, mortgaged home, credit card debt, tax bill (correct)
Thus, the fourth table accurately lists assets and liabilities.
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