A Personal Net Worth and Capability Statement

question 23

Multiple Choice

A personal net worth and capability statement:

• A) is similar to a business balance sheet.
• B) will usually justify borrowing.
• C) is no one's business.
• D) is more descriptive than numeric.

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Definitions:

Balance Sheet

An overview report showing a business's assets, liabilities, and equity held by shareholders at a specific time.

Adjusted Trial Balance

A statement of all debits and credits in a double-entry accounting system, adjusted for any journal entries, used to verify the balance of accounts before producing financial statements.

Financial Statement Column(s)

Columns in financial statements where various financial data are reported, such as assets, liabilities, revenues, and expenses.

Net Income

The net income of a company once all costs and taxes are subtracted from the total income.