Question

possession of which item would typically be considered a liability but not an asset?
student loan
expensive jewelry
new house
clothing

Explanation:

To solve this, we analyze each option:

• Student loan: A liability is a debt or obligation. A student loan is money borrowed that must be repaid, so it's a liability. It's not an asset (assets have economic value and are owned/controlled) as the loan itself is a debt, not something that provides value in the way assets do.
• Expensive jewelry: This is an asset because it has economic value and is owned.
• New house: A house is an asset (it has value and is owned, even with a mortgage, the house itself is an asset).
• Clothing: While its value may be lower, clothing you own is an asset (it has utility and some economic value as property).

Answer:

A. student loan