personal finance ch 2

  1. personal balance sheet
    statement of financial position on given date includes assets, liabilities & net worth
  2. assets
    what you own
  3. liabilities
    something that is owed or borrowing of money
  4. net worth/equity
    measure of level of wealth - assets - liabilities
  5. fair market value
    what an asset can be sold for rather than what it cost or what it would be worth in the future
  6. tangible asset
    physical asset (car or house)
  7. blue book
    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
  8. insolvent
    condition in which you owe more money that your assets are worth
  9. figuring balance sheet
    • assets (listed from most liquid to least liquid)
    • liabilities (current debt and long term debt)
  10. net worth
Card Set
personal finance ch 2
personal finance ch 2