Asset or Liability?
Cash
Asset
A plan for managing income and expenses
Budget
“Your bill is $30. Tax is 7%, tip is 15%. What’s the total?”
Tax $2.10
Tip $4.50
Total $36.60
Car loan
Liability
The money a person receives regularly from various sources (salary, investments)
Income
“Your bill is $40. Tax is 8%, tip is 15%. What’s the total?”
Tax $3.20
Tip $6.00
Total 49.20
Mortgage
Liability
The ability to borrow money with the expectation of paying it later (often with interest)
Credit
“Your bill is $50. Tax is 9%, tip is 20%. What’s the total?”
Tax $4.50
Tip $10.00
Total $64.50
Stocks
Asset
The original amount of money borrowed or invested
Principal
Your breakfast is $17.90. You tip 15%. And the tax rate is 6%.
How much is the tip, how much is the tax, and what is the total?
Tax $1.07
Tip $2.69
Total $21.66
Collectibles (Trading Cards, Coins, Action Figures)
Assets
Savings set aside to cover unexpected expenses
Emergency Fund
A seafood meal is $31.50. You tip 18%. And the tax rate is 7%.
How much is the tip, how much is the tax, and what is the total?
Tax $2.21
Tip $5.67
Total $39.38