While of the following increases liabilities but not assets?

B: Taking out a loan to go on vacation

Step-by-step explanation:

Lets first go over some terms. Liabilities refer to thing like debt. Assets refer to things that you own that have value.

A. Taking out a loan to buy a new car.

This option both increases your liabilities (As you now have a loan to pay), but you also gain an asset (The car), so this is not correct

B. Taking out a loan to go on vacation

This option increases your liabilities (You now have a loan to pay), but it does not increase one's assets as a vacation is an experience not an item of value.

C. Using a credit card to buy a computer

This option both increases your liabilities (As you have to pay off your credit card), but also gain an asset (the computer), so this is not correct

D. Paying off a student loan

This option decreases your liabilities as you are decreasing your debt, so this is not the correct answer.

1 is c

2 is a

3 is a

step-by-step explanation:

sine

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