roberto listed his assets and liabilities on a personal balance sheet. robertos balance sheet (september…

roberto listed his assets and liabilities on a personal balance sheet. robertos balance sheet (september 2013) assets liabilities cash $1,800 credit card $4,000 investments $6,200 personal loan $1,000 house $150,000 mortgage $100,000 car $8,000 car loan $5,000 total total after creating the balance sheet, roberto decided to use his investments to pay off his car loan. how will that decision affect the difference between his assets and liabilities? it will make the assets $5,000 less than the liabilities. it will make the assets $5,000 more than the liabilities. the difference between the assets and the liabilities will remain the same. the difference between the assets and the liabilities cannot be compared.

roberto listed his assets and liabilities on a personal balance sheet. robertos balance sheet (september 2013) assets liabilities cash $1,800 credit card $4,000 investments $6,200 personal loan $1,000 house $150,000 mortgage $100,000 car $8,000 car loan $5,000 total total after creating the balance sheet, roberto decided to use his investments to pay off his car loan. how will that decision affect the difference between his assets and liabilities? it will make the assets $5,000 less than the liabilities. it will make the assets $5,000 more than the liabilities. the difference between the assets and the liabilities will remain the same. the difference between the assets and the liabilities cannot be compared.

Answer

Explanation:

Step1: Calculate initial assets

Add up all initial assets: $1800 + 6200+150000 + 8000=$166000$.

Step2: Calculate initial liabilities

Add up all initial liabilities: $4000 + 1000+100000 + 5000=$110000$.

Step3: Calculate initial difference

Initial difference = Initial assets - Initial liabilities, $166000-110000=$56000$.

Step4: Calculate assets after payment

Assets after using investments to pay - off car - loan: $166000 - 5000=$161000$.

Step5: Calculate liabilities after payment

Liabilities after using investments to pay - off car - loan: $110000 - 5000=$105000$.

Step6: Calculate new difference

New difference = New assets - New liabilities, $161000-105000=$56000$.

Answer:

The difference between the assets and the liabilities will remain the same.