Creating a Personal Balance Sheet

1. How should the assets you own be reported in your personal balance
sheet?
A. At the previous owner’s book value of the asset
B. At the future value of the asset
C. At the actual or estimated current value of the asset
D. Either "At the future value of the asset" or "At the actual or estimated
current value of the asset", depending on the owner’s preference.
E. None of the above is correct.
2. A personal balance sheet reports what an individual or a family_______
owns & owes

3. A personal balance sheet - sometimes referred to as ________________

- net worth statement
- statement of financial position
4. How many steps to prepare a personal balance sheet? What are they?
3 steps
5. Which items might not be your assets? - list assets
- list lia
A. Real estate - estimate net worth

B. Personal possessions
C. Mortgage
D. Automobile
E. Credit card balances
F. Student loan
6. Which items might not be your liabitites?
A. Real estate
B. Personal possessions
C. Home mortgage
D. Long-term liabilities
E. Automobile
F. Credit card balances
G. Student loan
7. What should we do to increase net worth value?
Increase savings, investments; Reduce spending, amount owed
 No (Increase lia may reduce net worth value)
8. Should we increase what we owe to increase net worth value?
9. Total asset is equal to net worth value? Maybe (if have NO debt)

10.What is total asset? - Cash and other property with a monetary value

11.What is liability? - Amounts owed to others

12.What is net worth value? - The difference between total assets and total liabilities