How to increase net worth?

Increase assets, reduce liabilities

Financial Literacy Basics

Test your knowledge on fundamental concepts of personal and business finance, from income and expenses to profit and net worth.

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
What are liabilities?
Financial obligations owed
Income earned
Savings account
Assets owned
2
What are business expenses?
Personal spending
Costs of running business
Savings account
Investment profits
3
What is the purpose of profit and loss?
Calculate net worth
Assess financial performance
List assets
Track personal expenses
4
When to review a budget?
Once a year
Regularly, monthly
Never
Only when needed
5
Complete the sentence: Assets are...
Business debts
Monthly expenses
Only cash in hand
Resources that provide value
6
What is a budget?
Plan for income and expenses
Total liabilities
List of assets
Investment strategy
7
How to calculate profit?
Income minus expenses
Monthly budget
Assets plus liabilities
Total sales
8
Where to find business income?
Liabilities
Sales and services
Investments
Personal savings
9
What is personal income?
Loan amount
Earnings from work
Investment returns
Business revenue
10
When to create a budget?
Never
Only when in debt
At the start of the year
Only for businesses
11
What are assets?
Income sources
Valuable resources owned
Business debts
Monthly expenses
12
How to increase net worth?
Increase assets, reduce liabilities
Ignore budgeting
Increase expenses
Decrease income
13
Who benefits from a budget?
Only businesses
Investors only
Banks only
Individuals and families
14
Who manages a budget?
Banks only
Investors only
Individuals and businesses
Only financial advisors
15
Why track personal expenses?
Manage finances effectively
Reduce income
Avoid budgeting
Increase liabilities
16
What does net worth represent?
Total income
Assets minus liabilities
Business profits
Monthly expenses
17
What is capital?
Total liabilities
Funds for investment
Monthly budget
Personal savings
18
Why is capital important?
To avoid expenses
Funds for business growth
To increase liabilities
Only for personal use
19
What does profit indicate?
Total sales
Employee salaries
Earnings after expenses
Debt amount

Financial Literacy Basics Flashcards | StudBud

Financial Literacy Basics

19 termsStudBud Administration

Test your knowledge on fundamental concepts of personal and business finance, from income and expenses to profit and net worth.

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
What are liabilities?
Financial obligations owed
Income earned
Savings account
Assets owned
2
What are business expenses?
Personal spending
Costs of running business
Savings account
Investment profits
3
What is the purpose of profit and loss?
Calculate net worth
Assess financial performance
List assets
Track personal expenses
4
When to review a budget?
Once a year
Regularly, monthly
Never
Only when needed
5
Complete the sentence: Assets are...
Business debts
Monthly expenses
Only cash in hand
Resources that provide value
6
What is a budget?
Plan for income and expenses
Total liabilities
List of assets
Investment strategy
7
How to calculate profit?
Income minus expenses
Monthly budget
Assets plus liabilities
Total sales
8
Where to find business income?
Liabilities
Sales and services
Investments
Personal savings
9
What is personal income?
Loan amount
Earnings from work
Investment returns
Business revenue
10
When to create a budget?
Never
Only when in debt
At the start of the year
Only for businesses
11
What are assets?
Income sources
Valuable resources owned
Business debts
Monthly expenses
12
How to increase net worth?
Increase assets, reduce liabilities
Ignore budgeting
Increase expenses
Decrease income
13
Who benefits from a budget?
Only businesses
Investors only
Banks only
Individuals and families
14
Who manages a budget?
Banks only
Investors only
Individuals and businesses
Only financial advisors
15
Why track personal expenses?
Manage finances effectively
Reduce income
Avoid budgeting
Increase liabilities
16
What does net worth represent?
Total income
Assets minus liabilities
Business profits
Monthly expenses
17
What is capital?
Total liabilities
Funds for investment
Monthly budget
Personal savings
18
Why is capital important?
To avoid expenses
Funds for business growth
To increase liabilities
Only for personal use
19
What does profit indicate?
Total sales
Employee salaries
Earnings after expenses
Debt amount