Students will create and organize financial assets, and financial liabilities and construct a net worth statement. Financial assets are objects or items of value that someone owns and represents a positive value in relation to the person's net worth. A financial liability is an unpaid or outstanding debt that represents a negative value in relation to the person's net worth.The total assets of an individual after their liabilities have been settled is called a net worth statement. An individual’s net worth may be positive or negative depending on the amount or value of their assets and liabilities. These records may fluctuate each month depending on payments made towards liabilities, whether additional liabilities are taken on, or if the value of an asset changes due to appreciation or depreciation.
The list below shows Tim’s assets and liabilities. Determine Tim's net worth using this list.
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7.13 Personal financial literacy. The student applies mathematical process standards to develop an economic way of thinking and problem solving useful in one's life as a knowledgeable consumer and investor. The student is expected to:
(C) create and organize a financial assets and liabilities record and construct a net worth statement