FIN 502 Lecture 3: 502 Ch 4,5,6, Sirajum
9 Nov 2015
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Statement of financial position (balance sheet: provides a measure of the progress toward goals, shows the value of what assets you have to manage. page 69. Any group of people (or one person) who share revenue, expenses and net worth and make planning decisions together. Include all assets but in categories so you don"t get lost in the details. Financial provide income and/or are consumed in retirement record @ market value (value if sold in an unhurried, arm"s length transaction) Personal use used in everyday life provide no income, only consumption value the house and cars at market value. the rest are valued at replacement cost (cost to replace new). Luxury also used in everyday life but they are marginal to the family"s needs. value at replacement cost. Depreciated cost (cost less accumulated amortization) also of little use page 70.
