Which statement about asset verification is true?

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Multiple Choice

Which statement about asset verification is true?

Asset verification looks at all of an applicant’s assets to estimate how much income they produce for annual income calculations. In practice, programs often convert the value of assets into an estimated annual income (for example, applying a small percentage to the asset total). Savings accounts are part of that asset base, along with checking accounts, CDs, money market funds, and investments like stocks and bonds. That’s why savings accounts are included in the asset calculation for annual income purposes—the calculation isn’t limited to cash on hand. The other statements aren’t accurate because assets beyond cash are counted and investments aren’t disregarded; assets do contribute to annual income calculations.

Asset verification looks at all of an applicant’s assets to estimate how much income they produce for annual income calculations. In practice, programs often convert the value of assets into an estimated annual income (for example, applying a small percentage to the asset total). Savings accounts are part of that asset base, along with checking accounts, CDs, money market funds, and investments like stocks and bonds. That’s why savings accounts are included in the asset calculation for annual income purposes—the calculation isn’t limited to cash on hand. The other statements aren’t accurate because assets beyond cash are counted and investments aren’t disregarded; assets do contribute to annual income calculations.

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