Financial Position Concepts

Front

Financial position is determined by assets, liabilities, and equity.

Back

The financial position of a business is based on its assets, liabilities, and owner's equity.

Front

Assets are items of value owned by a person or business.

Back

Assets are things that you own that have dollar values.

Front

Liabilities are debts owed by a person or business.

Back

Liabilities are the total of your debts.

Front

Equity is the difference between total assets and total liabilities.

Back

Equity is also known as capital, owner’s equity, or net worth.

Front

Step 1 in determining financial position involves listing assets.

Back

List and total the things of value that you own.

Front

Step 2 in determining financial position involves listing liabilities.

Back

List and total your debts.

Front

Step 3 in determining financial position involves calculating equity.

Back

Calculate the difference between total assets and total liabilities.

Front

Calculate the difference between total assets and total liabilities.

Back

Total Assets: $9,770.00 Total Liabilities: $920.00 Difference: $8,850.00

Front

The amount that Chris is worth is known as equity, capital, or net worth.

Back

Front

Three steps are needed to work out a person's financial position.

Back