Consider the following scenario: You have a savings account with a balance that earns interest over time. How would you categorize this financial item, and why?
Assets vs Liabilities Scenarios List

Quiz
•
Social Studies
•
9th Grade
•
Medium
Leonel Oyervidez
Used 5+ times
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
Liability, because it requires regular deposits.
Asset, because it increases in value over time.
Liability, because it incurs fees.
Asset, because it is a form of debt.
2.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
You have a credit card debt that you are paying off monthly. How does this affect your financial situation, and what strategic plan could you implement to manage it effectively?
It is an asset; plan to increase spending.
It is a liability; create a budget to pay it off faster.
It is an asset; invest more in stocks.
It is a liability; ignore it and focus on savings.
3.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
You have invested in stocks that have the potential to appreciate in value. How should you classify this investment, and what reasoning supports your classification?
Liability, because it involves risk.
Asset, because it can generate returns.
Liability, because it requires management.
Asset, because it is a fixed cost.
4.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
A student loan is a common financial item for many individuals. How would you categorize it, and what strategic approach could you take to manage it?
Asset, because it funds education.
Liability, because it requires repayment with interest.
Asset, because it increases earning potential.
Liability, because it is a one-time payment.
5.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
You own a rental property that generates monthly income. How does this property impact your financial value, and what evidence supports your classification?
Liability, because it requires maintenance.
Asset, because it provides regular income.
Liability, because it depreciates over time.
Asset, because it is a tax deduction.
6.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
Consider a personal car used for commuting. How would you classify this item, and what reasoning supports your decision?
Asset, because it saves on public transport costs.
Liability, because it depreciates and incurs costs.
Asset, because it is a luxury item.
Liability, because it is a one-time purchase.
7.
MULTIPLE CHOICE QUESTION
5 mins • 7 pts
You have a mobile phone payment plan. How does this plan affect your financial situation, and what strategic plan could you implement to manage it?
Asset, because it is a communication tool.
Liability, because it requires monthly payments.
Asset, because it is a necessity.
Liability, because it is a one-time cost.
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