Brenda has created a personal balance sheet which lists her assets and liabilities. To determine whether Brenda is correct about her assets being greater than her liabilities, we need to look at the total values for both columns.
1. Assets Column Includes:
- Jewelry
- Wages
- Commission
- Bank Account
- Tips
2. Liabilities Column Includes:
- Food
- Health Insurance
- Rent
Brenda claims her assets are definitely greater than her liabilities. However, the validity of this claim depends on the total values assigned to each asset and liability, not simply on the number of items in each column. Here’s why:
- The number of items listed in the assets and liabilities columns does not necessarily reflect their total monetary value.
- For example, Brenda could have high-value items like jewelry or large amounts in a bank account, but without knowing their specific values, we cannot definitively say that her assets are greater.
- Similarly, liabilities such as rent or health insurance could be very high and surpass the total value of her assets.
To determine whether Brenda is correct, we need to calculate the total monetary value of both her assets and her liabilities. Since we do not have the specific values, it is possible that the total value of her assets could be less than her liabilities, making Brenda's statement uncertain.
Therefore, the best explanation is:
Brenda is not correct because the total value of her assets could be less than the liabilities.
