The following table shows the assets and liabilities of the smith family in 2005 and 2009
2005
home valued at $200,000
mortgage of $30,000
car valued at $25,000
car loan of $8,000
2009
home valued at $180,000
home equity loan of $18,000
car valued at $18,000
boat valued at $20,000
personal loan of $5,000
based on the table, which of the following is true?
a from 2005 to 2009, both assets and liabilities decreased
b. from 2005 to 2009, both assets and liabilities increased.
c. from 2005 to 2009, assets decreased and liabilities increased
d. from 2005 to 2009, assets increased and liabilities decreased.

From 2005 to 2009, both assets and liabilities decreased ⇒ answer a

Step-by-step explanation:

* Lets explain how to solve the problem

- Assets : means put money in your pocket

- Ex: cash, investments, land, buildings, equipment

- liabilities : take money out

- Ex: Accounts Payable , Customer Deposits , Income Taxes Payable

* Now lets solve the problem

# 2005

- Assets: home valued and car valued

∵ Home valued at $200,000

∵ Car valued at $25,000

∴ Assets = 200,000 + 25,000 = $225,000

- Liabilities: mortgage and car loan

∵ Mortgage of $30,000

∵ Car loan of $8,000

∴ Liabilities = 30,000 + 8,000 = $38,000

# 2009

- Assets: home valued , car valued and boat valued

∵ Home valued at $180,000

∵ Car valued at $18,000

∵ Boat valued at $20,000

∴ Assets = 180,000 + 18,000 + 20,000 = $218,000

- Liabilities: home equity loan and personal loan

∵ Home equity loan of $18,000

∵ Personal loan of $5,000

∴ Liabilities = 18,000 + 5,000 = $23,000

∵ Assets in 2005 is $225,000

∵ Assets in 2009 is $218,000

∵ Liabilities in 2005 is $38,000

∵ Liabilities in 2009 is $23,000

∴ From 2005 to 2009, both assets and liabilities decreased

the answer is From 2005 to 2009, both assets and liabilities decreased (A)

Step-by-step explanation:

i did it on edu

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Step-by-step explanation: