Financial Assessment Quiz

What is net worth?

• The difference between assets and liabilities

• The total income earned in a year

• The amount of debt owed

• The value of personal property

Tags

CCSS.6.NS.C.7C

Why is knowing net worth important for individuals?

• To assess the value of personal property

• To evaluate streams of income

• To determine current income and expenses

• To measure progress towards financial goals

What are examples of assets?

• Money in a bank account, a car, and a house

• Investment accounts, personal property, and stocks

• Business interests, real estate, and cash value of an insurance policy

• All of the above

What are liquid assets?

• Assets that can be easily converted to cash

• Assets that decrease in value over time

• Assets that cannot be easily converted to cash

• Assets that increase in value over time

What are appreciating assets?

• Assets that generally decrease in value over time

• Assets that generally increase in value over time

• Assets that cannot be easily converted to cash

• Assets that can be easily converted to cash

What are examples of depreciating assets?

• Stocks, savings accounts, and real estate

• Cars, computer equipment, and gaming systems

• Money in a bank account, a car, and a house

• Investment accounts, personal property, and stocks

What are liabilities?

• Assets that increase in value over time

• Assets that decrease in value over time

• The difference between assets and liabilities

• Debts or what is owed

What is considered good debt?

• Debt used for entertainment

• Debt used for everyday expenses

• Debt used to purchase depreciating assets

• Debt used to purchase appreciating assets

How can you determine your net worth?

• Multiply liabilities by assets

• Subtract liabilities from assets

• Add liabilities to assets

• Divide liabilities by assets

Tags

CCSS.6.NS.C.5

What is an example of an expense that is not a liability?

• Mortgage

• Car loan

• Rent

• Credit card balance