Understanding Net Worth Flashcards
1
Q
assets
A
things owned that have economic value
2
Q
balance sheet
A
a summary of your assets, liabilities, and net worth at a specific period in time; usually calculated monthly or quarterly
3
Q
equity
A
the value of ownership in an asset in excess of debts owed on it
4
Q
income statement
A
a statement of net income, or revenues minus expenses
5
Q
liabilities
A
debts owed
6
Q
net worth statement
A
a statement of the difference between what is owned (assets) and what is owed (liabilities), usually calculated annually
