Question: Which Of The Following Are Two Personal Financial Statements That You Create Yourself?

What are the main purposes of personal financial statements?

1.

Purpose of Personal financial statement: Personal financial statements provide information about your current financial position and present a summary of your income and spending.

(4) To provide data that you can use when preparing tax forms or applying for credit..

Which of the following is a liquid asset?

A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth.

Is a car a personal asset?

The short answer is yes, generally, your car is an asset. But it’s a different type of asset than other assets. Your car is a depreciating asset. Your car loses value the moment you drive it off the lot and continues to lose value as time goes on.

Which of the following are two personal financial statements that you create yourself quizlet?

The two personal financial statements that you create yourself are the personal balance sheet and a credit card payoff statement. The current financial position of an individual or family is a common starting point for financial planning. Net worth is the amount owed to others.

Which of the following is an example of a personal asset?

Common examples of personal assets include: 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.

What are the two types of personal financial statements?

There are two types of personal financial statements: The personal cash flow statement. The personal balance sheet.

Which of the following are considered to be the primary personal financial statements?

(p. 49) The two primary personal financial statements include the personal balance sheet and a credit card payoff statement. The statements include the personal balance sheet and the cash flow statement.

What are the elements of financial statements?

The elements of the financial statements include:Assets.Liabilities.Equity or net assets.Investments by owners.Distributions to owners.Comprehensive income.Revenues.Expenses.More items…

What’s a liquid asset?

Anything of financial value to a business or individual is considered an asset. Liquid assets, however, are the assets that can be easily, securely, and quickly exchanged for legal tender. Your inventory, accounts receivable, and stocks are examples of liquid assets—things you can quickly convert to hard cash.

What can be classified as an asset?

Examples of assets include:Cash and cash equivalents.Accounts Receivable.Inventory. It is often deemed the most illiquid of all current assets – thus, it is excluded from the numerator in the quick ratio calculation.Investments.PPE (Property, Plant, and Equipment) … Vehicles.Furniture.Patents (intangible asset)

Why might an individual want to create his or her own personal financial statements?

Keeping an updated personal financial statement allows an individual to track how their financial health improves or deteriorates over time. These can be invaluable tools when consumers want to change their financial sitution or apply for credit such as a loan or a mortgage.

What is another name for the statement of financial position?

balance sheetA statement of financial position is another name for a balance sheet.

What is the difference between statement of financial position and balance sheet?

Balance sheets are created by businesses that operate on a profit while statements of financial position are created by not for profit organizations. Unlike for profits, not for profits do not have owners and therefore do not record shareholder’s equity. Instead, not for profit organizations record net assets.

How do you prepare a statement of financial position?

The following are the simple steps you need to know in preparing a simple balance sheet:Start with the heading. The heading includes the name of entity (individual or company), name of the statement (balance sheet), and the reporting period (ex. … Present your assets. … Present your liabilities. … Add the owner’s equity.

What is my strongest asset?

Examples of personal characteristic assets include:Great smile.Ability to get along with many different personalities.Positive attitude.Sense of humor.Great communicator.Excellent public speaker.