john bought a car for $15,000, using $5,000 in cash and financing the remaining $10,000 with a loan. they…

john bought a car for $15,000, using $5,000 in cash and financing the remaining $10,000 with a loan. they also spend $100 each month on car insurance and $50 on fuel. what is the liability in this scenario? the $50 monthly fuel cost the $100 monthly insurance payment the $5,000 cash payment the $10,000 car loan

john bought a car for $15,000, using $5,000 in cash and financing the remaining $10,000 with a loan. they also spend $100 each month on car insurance and $50 on fuel. what is the liability in this scenario? the $50 monthly fuel cost the $100 monthly insurance payment the $5,000 cash payment the $10,000 car loan

Answer

Explanation:

Step1: Understand liability definition

Liability is an obligation or debt owed. Cash payment is an asset outflow (not a liability). Monthly fuel and insurance are expenses but not liabilities in the long - term debt sense. A loan is a debt.

Answer:

the $10,000 car loan