WorksheetsBuilding Wealth: Balance Sheet
Total questions: 20
Worksheet time: 12mins
Define assets
Assets that add to net wealth
The loss of value of an asset over time
Anything an individual or business owns that has commercial or exchange value
A financial statement showing a snapshot of the assets, liabilities, and net worth of an individual
Define Balance Sheet
A financial statement showing a snapshot of the assets, liabilities, and net worth of an individual
Money an individual or organization owes.
Define Depreciation
The difference between the total assets and total liabilities of an individual.
The loss of value of an asset over time.
Define Liabilities
Money an individual or organization owes
Anything an individual or business owns that has commercial or exchange value.
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.
Wealth-building assets
The loss of value of an asset over time
Anything an individual or business owns that has commercial or exchange value
Assets that add to net wealth
Anything an individual or business owns that has commercial or exchange value
Name two assets that are likely to depreciate in value over time
Land, Houses
Computers, Video Games
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.
If your total liabilities increase without a change in assets, how will it impact net worth?
Net worth Decreases
Net worth Increases
What is the formula for net worth?
Assets - Liabilites= Net worth
Assets + Liabilities + debt= Net worth
Assets+ Liabilities= Net Worth
What is balance sheet?
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss
Which one does not belong to liability?
Mobile Phone Bill
Bank Loan
Bank Balance
Owed To Friends
Property owned by an individual
Liability
Asset
Property
Net Worth
Examples of Liabilities include which of the following:
Loans, credit cards, and real property
Loans, mortgage, and credit cards
Loans, Art collection, and savings account
Mortgage, credit card, and real property
Define “Don’t put all your financial eggs into one basket”.
To make fried rice
Put your money in different types of investment
High risk, high return
Put all your money into one type of investment
Select the item which is a fixed asset
The value of all assets minus the value of all liabilities.
Financial obligations
Assets
Net Worth
Property
Which one of the following are financial institutions?
bank and credit union
library and hospital
school and museum
Starbucks and Wal-Mart
Going to work at a job is a way to....
get fired
earn money
make new friends
buy a motorcycle
