Tutorial_L02_A - CC3152 Principles of Financial Planning...

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CC3152 Principles of Financial Planning Tutorial 2 1 Suggested Answers to Tutorial Questions (Lecture 2) YOUR FINANCIAL STATEMENTS AND PLANS Discussion Question 1. Th e balance sheet summarizes your financial position by showing your assets (what you own listed at fair market value), your liabilities (what you owe), and your net worth (the difference between assets and liabilities) at a given point in time. With a balance sheet, you know whether your assets are greater than your liabilities, and, by comparing balance sheets for different time periods, you can see whether your net worth is growing. 2. Investments are assets that are acquired to earn a return, for example, stock or bonds. Real property is immovable and usually its value will go up in long run, for example, land or building. Personal property is movable property which is normally used in daily lives and its value depreciates shortly after being put into use, for example, cars, furniture, jewelry, clothing, etc. 3.
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This note was uploaded on 03/17/2009 for the course AF 3152 taught by Professor Peggy during the Spring '09 term at Hong Kong Polytechnic University.

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Tutorial_L02_A - CC3152 Principles of Financial Planning...

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