The following table shows the assets and liabilities of the Chang family in 2007 and 2008.

2007

2008

home valued at $315,000

home valued at $325,000

mortgage of $265,000

mortgage of $240,000

car valued at $10,000

car valued at $6,000

car loan of $5,000

car loan of $1,000

savings of $2,000

credit card debt of $1,500

Based on the table, which of the following is true?

a.

From 2007 to 2008, both assets and liabilities decreased.

b.

From 2007 to 2008, both assets and liabilities increased.

c.

From 2007 to 2008, assets decreased and liabilities increased.

d.

From 2007 to 2008, assets increased and liabilities decreased.

Question

Jonathan Buck

Mathematics

30 August, 18:05

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.

2007

2008

home valued at $315,000

home valued at $325,000

mortgage of $265,000

mortgage of $240,000

car valued at $10,000

car valued at $6,000

car loan of $5,000

car loan of $1,000

savings of $2,000

credit card debt of $1,500

Based on the table, which of the following is true?

a.

From 2007 to 2008, both assets and liabilities decreased.

b.

From 2007 to 2008, both assets and liabilities increased.

c.

From 2007 to 2008, assets decreased and liabilities increased.

d.

From 2007 to 2008, assets increased and liabilities decreased.

+4

Answers (2)

Know the Answer?

Zane Chan · Answer 1

I would say C is your answer, between these two years the assets decrease and the liabilities increase, which is a bad thing for the Chang Family

Ezekiel · Answer 2

Liabilities are what someone owes and assets are what someone owns and is worth something. The house is an asset and the car loan is a liability. According to the numbers provided the assets have an increase of $6,000 with + 10,000 from the house and - 4,000 from the car. And liabilities had a decrease of $25,500 with a - $29,000 from mortgage and car loans and a + 3,500 from the savings account and debt. So assets increase and liabilities decrease.