Question

Roberto listed his assets and liabilities on a personal balance sheet.

Answer 1

To see the effect on Robertos balance sheet, we will first have to get the total assets and liabilities
Total assets = cash+ investment+ house + car
Total liabilities= credit card + personal loan + mortgage  + car loan
Substituting the values, we will get
Total asset =$166000
Total liabilities =$1010000
Difference= $844000
To pay off car loan, he uses his investment
Total asset = $166000-5000
                   =$161000
Total liabilities= $1010000-5000
                        =$1005000
Difference=$844000
Therefore the answer is letter C, the difference between asset and liability will remain the same.

Answer 2

Answer: The correct option is C, i.e., the difference between the assets and the liabilities will remains the same.

Explanation:

Assets are the thing which gives the future profits and liabilities are the obligations.

It in the given data the assets are cash, investment, house and car.

$\text{Assets}=\ 1,800+\ 6,200+\ 1,50,000+\ 8,000=\ 166,000$

It in the given data the liabilities are credit card, personal loan, mortgage and car loan.

$\text{Liability}=\ 4,000+\ 1,000+\ 1000,000+\ 5,000=\ 1010,000$

The difference between liability and assets is $\ 1010,000-\ 166,000=\ 884,000$.

If Roberto use his his investment to pay off his car loan, then the assets decreased by $5000 and liabilities decreased by $5000.

$\text{Assets}=\ 166,000-\ 5,000=\ 161,000$

$\text{Liability}=\ 1010,000-\ 5000=\ 1005,000$

The difference between liability and assets is $\ 1005,000-\ 161,000=\ 884,000$.

Therefore, the correct option is C, i.e., the difference between the assets and the liabilities will remains the same.