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GaryK [48]
2 years ago
14

Your friends and you notice a classmate who always has brand new clothes, shoes, and electronics. What would you need to know in

order to tell if this classmate’s family is actually wealthy?
Mathematics
1 answer:
sashaice [31]2 years ago
5 0

To know if the classmate’s family is actually wealthy, one will need to know their assets and their debt.

<h3>What is an asset?</h3>

In financial accounting, an asset means a resource that is owned or controlled by a business or an economic entity. An asset is anything that can be used to produce positive economic value.

Assets represent the value of ownership that can be converted into cash and the examples of personal financial assets include cash and bank accounts, real estate, personal property like furniture and vehicles, and investments such as stocks, mutual funds, and retirement plans.

In this case, through the assets, one will be able to know that they're wealthy. The debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. This is the money that they owe.

The asset should more than the debt.

Learn more about assets on:

brainly.com/question/25746199

#SPJ1

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