AnswersFL-2102373-Personal Finance and Money Management HonorsIntroduction to Economics

Understanding Net Worth Answers

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Brenda created this personal balance sheet. Brenda’s Balance Sheet AssetsLiabilitiesjewelry food wages health insurance commission rent bank account tips Total Total Brenda says her assets are definitely greater than her liabilities. Which explains whether Brenda is correct?

A
Brenda is correct because she has five assets and only three liabilities.
B
Brenda is correct because all the items should be in the assets column of the balance sheet.
C
Brenda is not correct because the total value of her assets could be less than the liabilities.
D
Brenda is not correct because she needs to list more liabilities.
2
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Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha’s net worth?

A
$88,700
B
$91,700
C
$292,700
D
$496,700
3

Amala listed her assets and liabilities. Credit Card BalanceCar(Paid in full)JewelryStudent LoanSavings AccountStocks$850$2,200$125$2,500$1,200$1,500What is the total of Amala’s liabilities?

A
$850
B
$2,500
C
$3,350
D
$5,550
4

Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents. Which could be the heading of Carrie’s balance sheet?

A
Carrie’s Balance Sheet (January 1, 2021)
B
Carrie’s Balance Sheet (January)
C
Carrie’s Balance Sheet (Friday, January 3)
D
Carrie’s Balance Sheet (January 2011 – January 2021)
5

Anna is creating a personal balance sheet. She plans to list these items.Bank AccountJewelryHealth InsuranceRentWhich statements about the balance sheet are correct? Select three choices.

A
Health insurance, and rent will be listed in the liabilities column.
B
Anna will need to find the total value of her jewelry and bank account.
C
The period of the balance sheet will be one year.
D
Anna will add the value of the assets and subtract the value of the liabilities.
E
The items in the table will be listed in four columns.
6

Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset equity is really only $45,000. Which statement explains whether Julio is correct?

A
Julio is correct because the $45,000 equity in the house is the real asset.
B
Julio is correct because he can pay $45,000 and have no more liabilities.
C
Julio is not correct because the same item cannot represent both an asset and a liability.
D
Julio is not correct because the house cannot be worth more than the mortgage.
7

Omar’s income statement for the month of October is shown. What is Omar’s net income for October?

Question illustration
A
$1,000
B
$1,500
C
$2,500
D
$3,500
8

Enzo’s balance sheet for the month of July is shown. Enzo’s Balance Sheet (July 2013)AssetsLiabilitiescash$600credit card$4,000investments$500student loan$2,500house$120,000mortgage$80,000car$6,000car loan$2,000Total$127,100Total$88,500Which expression finds Enzo’s net worth?

A
127,100 dollars minus 88,500 dollars
Option A
B
127,100 dollars divided by 88,500 dollars
Option B
C
88,500 dollars + 127,100 dollars
Option C
D
88,500 dollars minus 127,100 dollars
Option D
9

Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pays $175 a month for utilities. Mr. Morgan owns a rental property for which he receives $680 per month.Which is a liability?

A
the yearly salary
B
the commission
C
the mortgage
D
the rental property
10

Tricia listed her assets and liabilities. Credit Card BillCar LoanBondsPianoBank AccountBicycleWhich are Tricia’s liabilities? Select two choices..

A
credit card bill
B
car loan
C
bonds
D
piano
E
bank account

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