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Net Worth:  the difference between your total assets, and 
            your total liabilities.


Assets:      things that ...
Assets:
Liquid Assets: assets that can easily be converted to cash
Semi­liquid assets: 
         assets that can be converted to cash, but not 
         immediately.

         usually some ...
Non­Liquid assets:
     assets that can not readily be converted to 
     cash.

     usually some type of property that m...
Liabilities: what you owe


Short­term debt

      should be paid off within a 12 month period

      typically credit car...
Long­term debt

       debt used to finance long­term investments 
       like real estate, or major personal assets like ...
Krista goes to her financial advisor to find out how 
her net worth looks. She gives her advisor the 
following informatio...
***
***
      Debt­Equity Ratio should not exceed 50% of Net 
      Worth. 
Complete Assignment #5


And that's the end of the unit.
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
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Lesson 3 Mar 11 2010

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Lesson 3 Mar 11 2010

  1. 1. Net Worth:  the difference between your total assets, and  your total liabilities. Assets: things that you own that are worth  something. Liabilities: what you owe
  2. 2. Assets: Liquid Assets: assets that can easily be converted to cash
  3. 3. Semi­liquid assets:  assets that can be converted to cash, but not  immediately. usually some type of long term  investment.
  4. 4. Non­Liquid assets: assets that can not readily be converted to  cash. usually some type of property that must be  sold in some manner
  5. 5. Liabilities: what you owe Short­term debt should be paid off within a 12 month period typically credit cards, and small loans
  6. 6. Long­term debt debt used to finance long­term investments  like real estate, or major personal assets like  your residence. 
  7. 7. Krista goes to her financial advisor to find out how  her net worth looks. She gives her advisor the  following information: ­ she lives in a $210,000 home with a mortgage of    $152,000.  ­ she has $35,000 invested in RRSPs ­ she has $734 in her chequing account and owes    $12,500 on her credit card. ­ she has a vehicle worth $15,000 but still owes    $5,000.
  8. 8. ***
  9. 9. *** Debt­Equity Ratio should not exceed 50% of Net  Worth. 
  10. 10. Complete Assignment #5 And that's the end of the unit.

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