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2.03 Statement of Financial Positions Note Taking Guide

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

How can you increase net worth

a)

Decrease assets

b)

Increase assets

c)

Increase liabilities

d)

Increase assets and liabilities

2.

How often is it recommended to create a Statement of Financial Position

a)

Four times per year

b)

Three times per year

c)

Two time a year

d)

Once per year

3.

What is a liability

a)

Everything a person owns

b)

assets that will generate money

c)

what is owed to others

d)

an individuals financial condition

4.

Which type of assets can be quickly converted into cash

a)

monetary

b)

tangible

c)

investment

d)

liable

5.

Which type of assets refers to property purchases to create a lifestyle or improve your life

a)

monetary

b)

tangible

c)

investment

d)

liable

6.

Which type of assets are purchased with the hope they will generate income and appreciate in value

a)

monetary

b)

tangible

c)

investment

d)

liable

7.

How is net worth calculated

a)

Assets + Liabilities

b)

Assets + Net Worth

c)

Assets - Liabilities

d)

Net Worth - Liabilities

8.

Describes an individuals or family's financial condition on a specified date

a)

Spending Plan

b)

Income and Expense Statement

c)

Statement of Financial Position

d)

Net Worth

9.

Measurement of how much a person or household owns once all debts have been paid

a)

net worth

b)

assets

c)

wealth

d)

income

10.

Why should you keep net worth in mind when making financial decisions

a)

to set goals

b)

to help you generate income

c)

people think they own less than what they do

d)

because current financial decision affect your future