What method is incorrectly described as determining illicit income based on assets vs. liabilities?

The method referred to as determining illicit income based on assets versus liabilities is known as the asset method. This method evaluates the total value of assets owned by an individual and subtracts liabilities to estimate net worth, thereby identifying any discrepancies that may indicate illicit income.

The expenditures method focuses on assessing an individual’s spending patterns and comparing them with declared income to identify any unaccounted or hidden revenue. The sources and application of funds method analyzes the flow of funds into and out of an individual’s account, providing insights into where the money comes from and how it is spent.

Therefore, the expenditures method does not involve measuring net worth through the comparison of assets and liabilities, making it the method that is incorrectly described in the question.