Millionaire- Wealth Building 2

Personal Balance Sheet: determines your

Hint: the difference between what you own and what you owe

• assets

• liabilities

• net worth

• income

Assets=$20,000

Liabilities=$30,000

What is the net worth?

• -$10,000

• - $50,000

• $10,000

• - $30,000

Answer explanation

A negative Net Worth is considered Insolvency

Which of the following is an asset?

• mortgage

• school loan

• real estate

• credit card bill

A sum of money for which someone is responsible, especially a debt, mortgage, car loan, or credit card debt is a _____

• expense

• liability

• net worth

• income

Which choice below best matches the following equation?

Home Value - Mortgage = Home Equity

• Income Statement

• Statement of Cash Flows

• Personal Balance Sheet

• Statement of Revenues

An auto loan is an example of ________

• Assets

• Liability

• Expense

• Mortgage

Which of the following is considered a personal asset?

• credit card

• savings account

• car loan

• student loan

Which of the following is considered a liability?

• Savings Account

• Mortgage

• Savings bond

• Brokerage Account

Debts and financial obligations (responsibilities)

• Liabilities

• Assets

• Negative Net Worth

• Property

You have a "Positive Net Worth" when:

• assets are less than liabilities

• liabilities are greater than assets

• assets are equal to liabilities

• assets are greater than liabilities