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Unformatted text preview: Net gain or (loss) INCOME has nothing to do with WEALTH. Net Worth Statement Asset Monetary (liquid) Tangible (physical) Investment (Capital) Liabilities Short term Long term NET worth positive or (negative) Assets Monetary/Liquid-Easily/readily converted to cash with no loss in market value or penalty-Maintenance of living expenses Cash Checks Tangible Assets/Lifestyle-Contributes to a particular quality of life-Maintenance of one’s lifestyle-Generally depreciates over time Houses Appliances Furniture Auto Tools Jewels Investment Assets/Capital Assets- Provides additional income- May increase over time- Generally appreciates Fair Market Value What any given buyer will give any given seller on any given day . Short term liability: less than one year to pay off Long term liability: more than one year to pay off...
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This note was uploaded on 12/01/2011 for the course HDFS 238 taught by Professor Boyce during the Fall '10 term at Michigan State University.
- Fall '10