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PF 2.03

TermDefinition
Asset Items of monetary value a person or household owns
Expense Money spent
Income Money recieved
Investment asset Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell at a higher price in the future
Liability A debt or obligation owed to others
Market value The amount you could realistically sell an asset for today
Monetary asset Assets that can be quickly and easily converted into cash
Net worth A measure of financial wealth and indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others
Statement of Financial Position A financial statement that describes an individual or family's financial condition on a specified date by showing assets, liabilities, and net worth
Tangible asset Personal property that was purchased to create a lifestyle or improve your life
Wealth A measurement of how much a person or household owns once all debts have been paid
Created by: william.hermann
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