To determine whether Brenda's assets are greater than her liabilities, we need to look at the general structure of her balance sheet. On a balance sheet, assets are items of value that Brenda owns, while liabilities are items that represent money she owes.
Brenda has the following entries:
- Assets: jewelry, wages, commission, bank account, tips
- Liabilities: food, health insurance, rent
The total value of her assets and liabilities would normally depend on the monetary values assigned to each item. Without specific numbers, we can't definitively calculate whether Brenda's total assets exceed her total liabilities.
While Brenda lists more assets (5) compared to liabilities (3), the number of items does not necessarily reflect their values. For example, if the value of the jewelry and bank account are high, she might have substantial assets. However, if her rent and health insurance costs are high, her liabilities might also be substantial.
Thus, it's not the quantity but the total value of these items that matters. Since we cannot ascertain these values from the information provided, Brenda's statement that her assets are definitely greater than her liabilities is not necessarily correct. Therefore, the correct explanation would be:
Brenda is not correct because the total value of her assets could be less than the liabilities.
