To determine which items from the table are liabilities, we need to identify those entries that represent money owed by the family rather than assets owned. Liabilities are financial obligations or debts.
Here are the steps to identify the liabilities from the given family’s assets and liabilities:
1. Credit Card Account: A credit card account balance indicates the amount owed to the credit card issuer. This is a liability because the amount must be paid back.
2. Utility Bill: A utility bill indicates money that is owed for utilities such as electricity, water, or gas. This is a liability because it is outstanding money that the family must pay.
3. Mortgage (30 years): A mortgage represents a loan taken out to purchase a home. It is a liability because the homeowner must repay this loan over time.
4. Student Loan (7 years): A student loan is money borrowed to pay for education. This is a liability because it must be repaid over a specified period.
Other items listed, such as the checking account, savings account, home equity, and car, are assets because they represent resources owned by the family.
Therefore, the liabilities from the table are:
- Credit card account: \[tex]$5,500
- Utility bill: \$[/tex]500
- Mortgage (30 years): \[tex]$210,000
- Student loan (7 years): \$[/tex]25,000
