The money in your checking and savings accounts, IRAs, stocks and bonds are all considered to be your total:

The money in your checking and savings accounts, IRAs, stocks and bonds are all considered to be your total:

• A. Debt
• B. Assets
• C. Fortune
• D. Liabilities

Answer: (B)

Assets are resources you own that have value and can be used to meet future needs or to generate cash. The money in checking and savings, IRAs, stocks, and bonds fit this description because they represent financial value you own and can access when needed. Liabilities are obligations you owe to others, such as loans or credit card debt, which reduce what you truly own. Fortune is a general way to refer to wealth but isn’t a precise accounting category. Your net worth is assets minus liabilities, so when describing what those financial items collectively represent, the term that fits best is assets.

Assets are resources you own that have value and can be used to meet future needs or to generate cash. The money in checking and savings, IRAs, stocks, and bonds fit this description because they represent financial value you own and can access when needed. Liabilities are obligations you owe to others, such as loans or credit card debt, which reduce what you truly own. Fortune is a general way to refer to wealth but isn’t a precise accounting category. Your net worth is assets minus liabilities, so when describing what those financial items collectively represent, the term that fits best is assets.