Different names such as financial statement or a net worth state-ment are used to describe a balance sheet. The balance relates to the relationship between assets and liabilities. Assets are properties having eco-nomic value. They are what you own and include liquid assets such as cash, savings accounts, and money market and mutual funds. Vehicles, furniture, appliances, stocks, real property or real estate are other examples of personal and real proper-ties or assets.
Liabilities are what is owed.
These include bills, charge accounts, loans for a mortgage and educational vehicles. These obligations may be due within the year or for a longer time as with a mortgage loan. A home mortgage loan can be written for up to 40 years. Net worth is determined by subtracting total liabilities from total assets. Net worth provides an exact picture of your family s financial situation.