Question

Tricia listed her assets and liabilities. Credit Card Bill Car Loan Bonds Piano Bank Account Bicycle Which are Tricia’s liabilities? Check all that apply.

Answer 1

Her liabilities are her credit card bill and her car loan. These are things that she owes and has to pay off, so they are liabilities due to the fact that she owes for these items. Her bonds, piano, bank account, and bicycle are counted as assets.

Answer 2

Answer

Credit Card Bill

Car Loan

Explanation

Liabilities are things which someone is responsible for, especially amount of money owed. In the case of Tricia the car loan is a liability because she is the borrower and once the borrower is credited with deposit in his/her account, this incurs a liability for the amount of the loan.

A credit card is a payment card issued to users to enable them  pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus the other agreed charges.

The  credit card debt is a type of unsecured liability which is incurred through credit card loans. Unsecured liability means that a debt is not secured by an asset.