personal finance ch 2

statement of financial position on given date includes assets, liabilities & net worth

what you own

something that is owed or borrowing of money

measure of level of wealth - assets - liabilities

what an asset can be sold for rather than what it cost or what it would be worth in the future

physical asset (car or house)

lisitng of used car prices, giving average price of particular year and model sells for & what you might receive for it as a trade in

condition in which you owe more money that your assets are worth

• assets (listed from most liquid to least liquid)
• liabilities (current debt and long term debt)