The Three Parts of Your Personal Balance Sheet Are

question 40

Multiple Choice

The three parts of your personal balance sheet are

• A)income, liabilities, balance.
• B)assets, expenditures, balance.
• C)assets, liabilities, balance.
• D)assets, liabilities, net worth.
• E)income, liabilities, net worth.

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Definitions:

Average Sale Period

The average sale period is a financial metric indicating the average time taken to convert inventory into sales, also known as the inventory turnover period.

Balance Sheet

An accounting document that outlines a business's resources, debts, and stakeholders' equity at a designated time.

Sales On Account

Sales made on credit, where the buyer is allowed to pay at a later date.

Cost Of Goods Sold

The direct expenses incurred in the production process of goods a company retails, consisting of materials and labor.