Objective 2.

03 - Statement of Financial Position Vocabulary

Terms
1. Asset
2. Expense

3. Income
4. Investment asset

5. Liability
6. Market value

7. Monetary asset
8. Net worth
9. Statement of Financial Position

10.Tangible asset

11.Wealth

Definitions
Everything a person owns with
monetary value
an outflow of money to another person
or group to pay for an item or service,
or for a category of costs
Money received such as wages earned
from working for pay
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
A debt or obligation owed to others
What you could realistically sell that
asset for today, not what you originally
paid
Can be quickly and easily converted into
cash
The measure of financial wealth
A financial statement that describes an
individual or familys financial condition
on a specified date by showing assets,
liabilities, and net worth
Personal property that was purchased
to create a lifestyle or improve your life
(also known as use or lifestyle assets)
Indicates the monetary value of all
possessions that a person or household
owns, minus the total amounts owed to
others