Net Worth

Front

What are assets?

Back

Assets are money or property you own.

Front

What are liabilities?

Back

Liabilities are debts or money you owe (you are responsible for paying back).

Front

What is an example of a liability?

Back

A mortgage is an example of a liability.

Front

Which of the following is an asset: mortgage, school loan, jewelry, or credit card bill?

Back

Jewelry is an asset.

Front

What is the value of land you own worth $200,000 classified as?

Back

This is an asset.

Front

What is net worth?

Back

Net worth is the difference between your total assets and total liabilities.

Front

If you have $50,000 in assets and $20,000 in liabilities, what is your net worth?

Back

Your net worth is $30,000.

Front

What is an example of an asset?

Back

Cash in a bank account is an example of an asset.

Front

What does it mean if someone has a negative net worth?

Back

It means their liabilities exceed their assets.

Front

What is the relationship between assets and liabilities?

Back

Assets are what you own, while liabilities are what you owe.