ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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net worth
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money management
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budget variance
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earned income
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Detailed explanation-1: -Your net worth is the amount by which your assets exceed your liabilities. In simple terms, net worth is the difference between what you own and what you owe. If your assets exceed your liabilities, you have a positive net worth.
Detailed explanation-2: -Net worth is calculated by subtracting all liabilities from assets. An asset is anything owned that has monetary value, while liabilities are obligations that deplete resources, such as loans, accounts payable (AP), and mortgages.
Detailed explanation-3: -Assets include the value of securities and funds held in checking or savings accounts, retirement account balances, trading accounts, and real estate. Liabilities include any debts the individual may have including personal loans, credit cards, student loans, unpaid taxes, and mortgages.
Detailed explanation-4: -Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed.
Detailed explanation-5: -List your assets (what you own), estimate the value of each, and add up the total. Include items such as: List your liabilities (what you owe) and add up the outstanding balances. Subtract your liabilities from your assets to determine your personal net worth.