7 Net Worth Statement Flashcards
What are assets?
Everything you own that has monetary value.
What does it mean to be insolvent?
A financial status indicating that a person owes more than he or she owns and that the person has a negative net worth.
Define investment (capital) assets.
Tangible and intangible items acquired for their monetary benefits.
What are liabilities?
What you owe.
What are lifestyle assets?
Personal property used to maintain your everyday lifestyle.
What is a long-term (noncurrent) liability?
Debt that comes due in more than one year.
Define monetary assets.
Assets that can be used as cash.
What is net worth?
What remains after subtracting liabilities from assets.
What is a net worth statement?
A snapshot of assets, liabilities, and net worth on a particular date.
What is a short-term (current) liability?
Obligation to be paid off within one year.
