WorksheetsAssets & Liabilities and Net Worth (Q1–Q21)
Total questions: 55
Worksheet time: 29mins
Which of the following is an asset?
Credit card balance
Student loan
Savings account
Rent payment
A liability is best defined as:
Something you own that increases in value
A debt or obligation you owe
Any item you buy with cash
Your monthly income
Which item is most likely considered a liability?
Rental property producing income
Car loan
Stock portfolio
Cash in your wallet
Which of the following is an example of a current asset?
Land
Savings account
Mortgage
Student loan
Which item is usually an asset on your personal financial statement?
Medical debt
Payday loan
Car (owned outright)
Credit card bill
Which item is both an asset AND can be used to build wealth over time?
High-interest credit card
Investment property
Late fee
Car lease
If you owe money on your car, the car is:
Only a liability
Only an asset
An asset and the loan is a liability
Neither
Which is an example of a liability that commonly increases net worth?
Mortgage used to buy a home that increases in value
Credit card debt for shopping
Payday loan
Late fee balance
Which example is an asset that can quickly be turned into cash?
House
Savings account
30-year loan
Student loan
Which is the best example of a liability?
Retirement account
Emergency fund
Auto loan
Stock investment
Which category best describes a mortgage?
Asset
Liability
Income
Equity
Which of the following is NOT an asset?
Checking account
Mutual fund
Personal loan balance
Rental property
Which of these is usually a “non-current asset”?
Cash
Car
Grocery money
Credit card
If you have 2,000insavingsandowe 5,000 on a loan, your net worth is:
$7,000
$3,000
-$3,000
-$7,000
What is the main difference between assets and liabilities?
Assets cost more than liabilities
Assets put money in your pocket; liabilities take money out
Liabilities are only loans
Assets are always cash
Which is a liability even if you pay it later?
Monthly rent
Car loan
Weekly allowance
Gift card
Which item is an asset but usually loses value over time?
Stock index fund
Car
Rental property
Certificate of deposit
Which is a liability that typically has the highest interest rate?
Federal student loan
Credit card debt
Mortgage
Savings account
Net worth is calculated as:
Assets + liabilities
Income – expenses
Assets – liabilities
Expenses – income
If your total assets are 50,000andtotalliabilitiesare 20,000, your net worth is:
$30,000
$70,000
$20,000
-$30,000
If you increase liabilities without increasing assets, net worth will likely:
Increase
Decrease
Stay the same
Double
Which action will most likely increase net worth?
Buying a gaming console with a credit card
Paying down debt
Adding a new car loan
Missing payments
Which is most likely to increase net worth long-term?
Financing a vacation
Investing in an index fund
Only paying minimum payments on credit cards
Leasing a vehicle every year
A positive net worth means:
You owe more than you own
Your income is higher than expenses
You own more than you owe
You have no debts
If you have a negative net worth, one best step is to:
Ignore it
Take on more loans
Increase high-interest debt payments
Stop tracking money
If your assets increase by $5,000 and liabilities stay the same, net worth:
Decreases by $5,000
Increases by $5,000
Stays the same
Becomes negative
Which scenario increases net worth the most?
Buying a car using a loan
Paying off $1,000 in credit card debt
Borrowing $1,000
Shopping a sale using credit
Which would be included in "assets" when calculating net worth?
Mortgage balance
Credit card debt
Retirement savings
Utility bill
Which would be included in "liabilities" when calculating net worth?
Savings
Car loan balance
Owned home value
Stock value
When is net worth most useful?
Only when shopping
For measuring long-term financial health
Only when filing taxes
Only when you are debt-free
Depreciation means:
An asset gains value over time
An asset loses value over time
A debt increases over time
A debt decreases over time
Which asset is most known for depreciation?
Car
Gold
Land
Stock index fund
When does a brand-new car usually depreciate the most?
After 10 years
During the first 1–3 years
After 15 years
Only after it’s fully paid off
Depreciation impacts net worth because it:
Raises liabilities
Lowers the value of assets
Raises income
Eliminates debt
Which is an example of depreciation?
A home increases in value
A car is worth less each year
Your savings grows with interest
You get a raise
If an asset depreciates, what happens to your net worth (all else equal)?
It increases
It decreases
It stays the same
It becomes zero
What is the best definition of “depreciating asset”?
Something that increases your income
Something that loses value over time
A loan you owe
A bank account
Which item is most likely to depreciate quickly?
A new smartphone
Land
Gold
Real estate in a growing city
Why does depreciation matter in wealth-building?
Depreciation increases cash flow
Depreciation helps debt disappear faster
Depreciation can reduce the value of things you own
Depreciation makes investments safer
A wealth-building asset is something that:
Loses value quickly
Creates income or grows in value
Costs money every month and doesn’t grow
Always comes with debt
Which is the best example of a wealth-building asset?
Credit card
Rental property
A vacation
New clothes
Which investment is generally considered a long-term wealth-builder?
Index fund
Payday loan
Late payment fees
Lottery tickets
Which is most likely a wealth-building asset?
A business you own that earns profit
A financed TV
A car lease
Credit card interest
Why is a primary home sometimes considered a wealth-building asset?
It always depreciates
It can increase in value over time and builds equity
It has the highest interest rate
It is not an asset
Which is a key sign something is a wealth-building asset?
It gives you money each month
It requires constant high fees
It loses value every year
It creates more debt
Which is most likely a “non-wealth-building” asset?
Car used for commuting
Rental property
Dividend stocks
Retirement account
What is equity in a home?
Total loan amount
Home value minus what you owe
Total utilities paid
The amount you pay in rent
Which choice best increases wealth over time?
Spend all raises immediately
Invest consistently into retirement accounts
Use credit cards for wants
Avoid saving
Which combination best describes a strong wealth-building strategy?
High debt + no investing
Invest regularly + reduce high-interest debt
Which of the following expenses should be included in a typical budget?
taxes
charitable giving - charities
savings
All of the expenses should be included in a typical budget
What is the primary benefit of using a budgeting app to manage your finances?
To get recommendations on stocks to invest in
To track your spending and help you stick to your budget
To automatically increase your credit score
To transfer money internationally without fees
Which of the following is NOT true of a budget? [note capitalization of “NOT”]
Budgets help you plan how to spend money you earn or receive
Once a budget is set, it should not be revisited
A budget can include charitable giving
Budgets include both income and expenses
What is a budget?
A type of savings account
A way to invest for retirement
A fund for emergencies
A financial plan that defines expenses for a period of time.
