ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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net income
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amount in your checking account
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value of your car
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home mortgage
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Detailed explanation-1: -A personal balance sheet provides an overall snapshot of your wealth at a specific period in time. It is a summary of your assets (what you own), your liabilities (what you owe), and your net worth (assets minus liabilities).
Detailed explanation-2: -Personal property: Items such as furniture and household goods are typically not included as assets on a personal balance sheet because these items can’t easily be sold to pay off a loan.
Detailed explanation-3: -A balance sheet shows a snapshot of a company’s assets, liabilities and shareholders’ equity at the end of the reporting period. It does not show the flows into and out of the accounts during the period.
Detailed explanation-4: -Common stock. Explanation: Common stock is neither classified as an asset or a liability. It is classified as owner’s equity in the balance sheet.