If Cindy has a checking account balance of $1,300, an American Express balance of $650, and a house worth $255,000, what is her total asset count?

If Cindy has a checking account balance of $1,300, an American Express balance of $650, and a house worth $255,000, what is her total asset count?

• A. $257,650
• B. $255,300
• C. $279,075
• D. $256,300

Answer: (D)

Total assets are the resources of value you own. In this scenario, Cindy’s checking account balance and the house are assets. The American Express balance is a debt, a liability, not an asset, so it doesn’t add to the asset total. Add the assets: 1,300 + 255,000 = 256,300. So the total asset count is 256,300. If you were asked for net worth, you’d subtract the liability (650) from this asset total to get 255,650.

Total assets are the resources of value you own. In this scenario, Cindy’s checking account balance and the house are assets. The American Express balance is a debt, a liability, not an asset, so it doesn’t add to the asset total. Add the assets: 1,300 + 255,000 = 256,300. So the total asset count is 256,300. If you were asked for net worth, you’d subtract the liability (650) from this asset total to get 255,650.