3
QuizMultiple Choice

Understanding Net Worth

Question 3 • Personal Finance - EL3403

Rita does chores for her neighbors and makes $45 each weekend. She owes her sister $80. Rita has $178 in coins and a collection of baseball cards worth $475.Which is a liability?

Answer
A
the money she earns
B
the money she owes her sister
C
the coins
D
the collection of baseball cards

Explanation

A liability is money that a person owes. Rita owes her sister $80, so that debt is a liability. Her earnings, coins, and baseball cards are assets because they are money or possessions she has.

AI-written and checked against the verified answer.

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