Intro to Balance Sheet and Income Statements

You have a car that is worth 22,000.

• This is an asset.

• This is a liability.

• This is your net worth.

Which is true?

• To find net worth, you add all of your assets, add all of your liabilities, then subtract your assets from your liabilities.

• To find net worth, you add all of your assets, add all of your liabilities, then subtract your liabilities from your assets.

A retirement account of $300,000 is

• a liability.

• an asset.

• your net worth.

Your total LIABILITIES: $600,000.

Your total ASSETS: $500,000.

• $100,000

• -$100,000

• $1,100,000

Assets are best described as

• money or property you own

• financial debts and obligations for which you owe
• your net worth
• adjusted gross income

Debts or money you owe (you are responsible for paying back).

• Liabilities

• Assets

• Negative Net Worth

• Property

Jin's total assets are $8,794.  Her liabilities are $6,292.  What is her net worth?

• $6,124
• $15,086
• -$4,328
• $2,502

Jin's total assets are $8,794.  Her liabilities are $2,670 in credit card debt and $3,622 for a student loan.  What is her net worth?

• $6,124
• $15,086
• -$4,328
• $2,502

Car Payment

• Fixed Expense

• Variable Expense

Gas for Traveling

• Variable Expense

• Fixed Expense