Investing Instruments _Quiz-1

What does a personal balance sheet show?

(a)  

What happens if your liabilities are more than your assets?

• You have a negative net worth

• You have a positive net worth

• You have a no financial obligations

• Your income automatically increases

What does an income statement show?

• A company's assets and liabilities

• A company's revenue, expenses, and profit or loss

• A company's tax returns

• A company's investment portfolio

If your cash inflow is more than your cash outflow, what happens?

• You have no money

• You have extra money left

• You owe money to others

• You have a negative cash flow

If you spend more than you receive, what happens?

• You build wealth over time

• You will have a negative cash flow

• Your savings increase

• Your savings increase

Which of the following is considered a liability on a personal balance sheet?

• A bank loan or mortgage

• A house fully paid off

• Stocks and bonds

• Cash savings in a bank