balance sheet

Give one reason why houses are generally considered a wealth-building asset.

• Because it has a mortgage

• A house is not a wealth-building asset.

• A house is a wealth-building asset when it appreciates in value over time.

• A house is not wealth-building asset it is a liability.

Select the item which is a fixed asset

• 
• 

The table below shows Claude's assets and liabilities.  What is the total value of his liabilities?

• $24,950
• -$24,520
• $25,420
• $50,370

Define Net worth

• The loss of value of an asset over time.

• The difference between the total assets and total liabilities of an individual.

• Assets that add to net wealth.

• Money an individual or organization owes.

Whcih of the following consist of only assets?

• Car, Bank Loan, Computer

• Creditor, Debtors, Cash at Bank

• Debtors. Cash at bank, Building

• Cash in hand, cash at bank, creditors

Total value of assets less total value of liabilities. It represents the capital originally invested in the business (share capital) or the retained earnings / profits (reserves).

• Liabilities

• Assets

• Equity

They are long-term debts or borrowings payable after 12 months by the business. They include long-term bank loans and mortgages.

• Long-term liabilities

• Current liabilities

Define Liabilities

• Money an individual or organization owes

• Anything an individual or business owns that has commercial or exchange value.

Short-term assets that last in a business for up to 12 months. They include cash, debtors, and stock.

• Fixed assets

• Current assets

Which one is not belongs to liability?

• Mobile Phone Bill

• Bank Loan

• Bank Balance

• Owed To Friends