39
QuizMultiple Choice

N/A — Exam

Question 39 • Personal Finance

Geoff rents an apartment with a monthly rent of $850. He owns the furniture in the apartment, which is worth $3,500, and he owns his car, which is worth $6,000. Geoff has a balance of $1,225 on his credit card and has $3,560 in a savings account. Which is one of Geoff’s liabilities?

Answer
A
the credit card
B
the savings account
C
the furniture
D
the car

Explanation

A liability is a debt or financial obligation that a person owes. Geoff owes $1,225 on his credit card, so the credit card balance is a liability. His savings, car, and furniture are assets he owns.

AI-written and checked against the verified answer.

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