2.03 Statement of Financial Positions Note Taking Guide

How can you increase net worth

• Decrease assets

• Increase assets

• Increase liabilities

• Increase assets and liabilities

How often is it recommended to create a Statement of Financial Position

• Four times per year

• Three times per year

• Two time a year

• Once per year

What is a liability

• Everything a person owns

• assets that will generate money

• what is owed to others

• an individuals financial condition

Which type of assets can be quickly converted into cash

• monetary

• tangible

• investment

• liable

Which type of assets refers to property purchases to create a lifestyle or improve your life

• monetary

• tangible

• investment

• liable

Which type of assets are purchased with the hope they will generate income and appreciate in value

• monetary

• tangible

• investment

• liable

How is net worth calculated

• Assets + Liabilities

• Assets + Net Worth

• Assets - Liabilities

• Net Worth - Liabilities

Describes an individuals or family's financial condition on a specified date

• Spending Plan

• Income and Expense Statement

• Statement of Financial Position

• Net Worth

Measurement of how much a person or household owns once all debts have been paid

• net worth

• assets

• wealth

• income

Why should you keep net worth in mind when making financial decisions

• to set goals

• to help you generate income

• people think they own less than what they do

• because current financial decision affect your future