RM 2.2 REVIEW

NET WORTH IS CALCULATED BY USING THE ...

• STATEMENT OF FINANCIAL POSITION

• INCOME & EXPENSE STATEMENT

• SPENDING PLAN

• BUDGET

A FINANCIAL STATEMENT THAT DESCRIBES AN INDIVIDUAL OR FAMILY'S FINANCIAL CONDITION ON A SPECIFIED DATE BY SHOWING ASSETS, LIABILITIES, AND NET WORTH

• STATEMENT OF FINANCIAL POSITION

• INCOME & EXPENSE STATEMENT

• SPENDING PLAN

• BALANCE SHEET

ITEMS OF MONETARY VALUE THAT A PERSON OR HOUSEHOLD OWNS

• ASSETS

• MONETARY ASSETS

• TANGIBLE ASSETS

• INVESTMENT ASSETS

ASSETS THAT CAN BE QUICKLY AND EASILY CONVERTED TO CASH..CASH ON HAND, MONEY IN CHECKING OR SAVINGS ACCOUNTS

• MONETARY ASSETS

• TANGIBLE ASSETS

• INVESTMENT ASSETS

• ASSETS

ALSO KNOWN AS LIFESTYLE ASSETS; PERSONAL PROPERTY, HOME, AUTOMOBILE, ELECTRONICS, FURNITURE OR ANY OTHER PROPERTY USED TO CREATE A LIFESTYLE OR IMPROVE YOUR LIFE

• TANGIBLE ASSET

• INVESTMENT ASSET

• MONETARY ASSET

• ASSETS

THE AMOUNT FOR WHICH YOU COULD REALISTICALLY SELL THE ASSET TODAY, NOT WHAT YOU ORIGINALLY PAID FOR IT.

• MARKET VALUE

• TRUE VALUE

• COST VALUE

• RELEVANT VALUE

FINANCIAL ASSETS PURCHASED WITH THE HOPE THAT THEY WILL GENERATE INCOME AND APPRECIATE IN VALUE SO AS TO SELL AT A HIGHER VALUE IN THE FUTURE.

• INVESTMENT ASSET

• TANGIBLE ASSET

• MONETARY ASSET

• ASSET

A DEBT OR OBLIGATION OWED TO OTHERS

• LIABILITY

• ASSET

• EXPENSE

• LOAN

MONTHLY CAR LOAN PAYMENT

• EXPENSE

• DEBT

• LIABILITY

• LOAN

ASSETS - LIABILITIES = ...

• NET WORTH

• NET INCOME

• NET SAVINGS

• NET EXPENSES