Question

Rita does chores for her neighbors and makes $45 each weekend. She owes her sister $80. Rita has $178 in coins and a collection of baseball cards worth $475.

Which is a liability?

Economics

Answer 1

The liability would be giving her sister the money. Hope I helped =)

Answer 2

Answer: "Rita owes her sister $80" is a liability.

Step-by-step explanation:

Liability means the responsibility to pay back to whom an individual had owed it.

So, here,

1) Amount Rita makes each weekend = $45

So, it is her earned income .So, it will be  her asset.

2) Amount she has in coins = $178

Amount she collect from baseball cards = $475

Again, it is her asset as there is no responsibility to pay back.

3) Amount she owed her sister = $80

Here is the responsibility of $80 which should be pay back.

So, it is her liability.

Hence, "Rita owes her sister $80" is a liability.