Your personal balance sheet provides
A)an estimate of your net worth at a point in time.
B)an illustration of how your wealth has changed over time.
C)a summary estimate of your expenses and income over the previous year.
D)a pro forma budget for the coming year.

Question

Quizplus · Accepted Answer

A personal balance sheet is essentially a statement of assets, liabilities, and equity at a point in time. It provides an estimate of your net worth, which is calculated as assets minus liabilities. It does not show changes over time, nor does it provide information on expenses and income, or a budget for the future.

Your Personal Balance Sheet Provides