Colin listed his assets and liabilities on a personal balance sheet. Colin’s Balance Sheet (August 2013)AssetsLiabilitiescash$1,500credit card$500stocks$800rent$800car$5,000car loan$1,200coin collection$1,200student loan$5,000Total Total Which statement is true about the total assets and the total liabilities?
Answer
A
The total of the assets and the liabilities are the same.
B
The total of the assets is greater than the total of the liabilities.
C
The total of the assets is less than the total of the liabilities.
D
The total of the assets cannot be compared to the total of the liabilities.
Explanation
Add the assets: $1,500 + $800 + $5,000 + $1,200 = $8,500. Add the liabilities: $500 + $800 + $1,200 + $5,000 = $7,500. Since $8,500 is greater than $7,500, the total assets are greater than the total liabilities.
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