ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A balance sheet is a financial statement that summarizes the assets, liabilities, and equity of a business at a particular point in time. Its purpose is to provide a snapshot of the financial condition of a business, showing the resources it has available to generate profits, how it is funded and its overall net worth.

Detailed explanation-2: -Personal Assets Cash and cash equivalents, certificates of deposit, checking, and savings accounts, money market accounts, physical cash, Treasury bills. Property or land and any structure that is permanently attached to it. Personal property-boats, collectibles, household furnishings, jewelry, vehicles.

Detailed explanation-3: -Financial planning generally reduces an individual’s financial uncertainties.

Detailed explanation-4: -The value of what you own minus the value of what you owe is called your net worth.