U1A3-Assignment

Name ________________________
1. Define/explain the following terms and give an example where indicated.
Term or Explanation/Definition Example
concept (cells will expand as you type)

Financial Financial status of a no example necessary

position business as represented by
assets, liabilities and
owner’s equity

Asset Items of value that is Cash,

“owned” by the business Products(inventory),
Equipment, Furniture,
Delivery Truck,
Accounts Receivable

Liability Debts, “owed” to suppliers, Bank Loan, Mortgage,

bank, etc... Accounts Payable

Owners Equity Owner’s investment in the no example necessary

business. Often called
capital, net worth.

2. Gina Esposito is a student at Northview Collegiate. The following is a list of items that
Gina has prepared in order to calculate her personal Net Worth or Financial Position
on May 31, 2015. Calculate Gina’s financial position.

Cash in bank: $225

MP3 player: $125
Clothes: $730
Cell phone $80
Jewellery $140
Loan from mother: $350

Gina’s Assets (Cells will expand as you type.) Value

Cash in Bank 225

MP3 125
Clothes 730
Cell phone 80
Jewellery 140

Total Assets 1300

 Gina’s Liabilities

Loan from Mom 350

Total Liabilities 350

Gina’s Net Worth OE=A-L

OE = 1300-350 = 950

3.

A = L + OE

45,000 = 15,000 + 30,000

85,000 = 20,000 + 65,000

255,000 = 110,000 + 145,000

92,000 = 40,000 + 52,000

575,000 = 275,000 + 300,000