1. Family A’s income is more than twice that of Family B, yet Family B has more equity, or positive value, on the things that they own. How do you account for the difference?

The difference can be account as:Family A has higher debt while Family B has Lesser debt

Equity is the state of possessing an assets after

paying off the Liabilities, which is why Equity is calculated as:

Equity= Total assets - Total Liabilities

In this scenario the difference can be account as:Family A has higher debt while Family B has Lesser debt  which is why despite the fact that   Family A income is higher than that of Family B , Family B still possesses more  Assets than that of Family A due to their lesser debt.

Inconclusion The difference can be account as:Family A has higher debt while Family B has Lesser debt.

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True
False

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