Statement of Financial Position (Personal Balance Sheet)

A financial statement that shows what one owns and debts that one owes

• Personal balance sheet

• Budget

• Credit card statement

• Bank statement

Items of value, such as cash, real estate, personal possessions, and investments

• net worth

• liabilities

• assets

Cash be quickly and easily converted to cash

• tangible assets

• monetary assets

• investment assets

Personal property that was purchased to create a lifestyle or improve your life

• tangible assets

• monetary assets

• investment assets

Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell at a higher price in the future

• tangible assets

• monetary assets

• investment assets

Debts that one owes

• monetary assets

• tangible assets

• expenses

• liabilities

Which is the correct formula for net worth:

• assets + liabilities = net worth

• assets - liabilities = net worth

• liabilities - assets = net worth

All of the following are ways to increase your net worth EXCEPT:

• reduce expenses

• increase spending

• increase savings

• increase investments

The paycheck you will receive next week should be included in your monetary assets.

• True

• False

A retirement account is an example of a(n):

• tangible asset

• monetary asset

• investment asset