01:220:110 Study Guide - Final Guide: Cash Flow Statement, Financial Statement, Current Liability
21 Dec 2016
School
Department
Course
Professor
Document Summary
Economics 110 - personal finance and decision making. Measure and assess your financial position and progress. Items of value (what you own) - amounts owed (what you owe) = net worth (your wealth: items of value. Assets - cash and other property with a monetary value. Liquid assets - cash and items of value that can easily be converted to cash (e. g. checking account balance, savings/money market accounts, cash value of life insurance) Real estate, personal possessions (e. g. car, electronics, jewelry) Investment assets - funds set aside for long-term financial needs (e. g. retirement accounts, mutual funds: amounts owed. Liabilities - amounts currently owed to others. Current liabilities - debts you must pay within a short time, typically less than a year (e. g. medical bills, tax payments, insurance premiums, cash loans, charge accounts) Long-term liabilities - debts you do not have to pay in full until more than a year from now (e. g. auto loans, educational loans, mortgages: computing net worth.
