A personal financial statement is a document summarizing a person’s financial standing. It provides a full list of their personal assets and liabilities as well as their income and expenses. Commonly required by financial institutions when applying for credit or a loan, it demonstrates a person’s creditworthiness and repayment ability.
This form is typically used in the context of military applications or evaluations that require an assessment of an individual's financial situation. The form includes sections where the applicant can provide details about their income, expenses, assets, liabilities, and other
The financial statements are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings potential. The three major financial statement reports are the balance sheet, income statement, and statement of cash flows. Not all financial statements are created equally.
Monthly financial reports are a management way of obtaining a concise overview of the previous month’s status to have up-to-date reporting of the cash management, profit, and loss statements while evaluating future plans and decisions moving forward.
Assets are physical or digital goods with monetary value. Examples include: 1. Bank accounts (checking, savings, money market accounts) 2. Investment accounts: Stocks, ETFs, mutual funds, bonds, commodities 3. Retirement accounts: 401(k), IRA, etc. 4. Certificate of deposit 5. Physical cash 6. Real estate 7. Personal properties with significant val
Liabilities are debts and financial obligations that a person is tied to. Examples include: 1. Credit cards with a balance 2. Student loans 3. Unpaid medical bills or taxes 4. Mortgages or vehicle loans 5. Co-signed loans See full list on eforms.com
A person’s net worth represents their monetary value after their liabilities have been accounted for. [Total Value of Assets ($) – Total Value of Liabilities ($) = Net Worth($)] See full list on eforms.com
Income represents all the positive cash flow coming in. Examples include: 1. Monthly wages 2. Bonuses 3. Commissions 4. Passive income: Dividends, interest on savings account, etc. See full list on eforms.com
Expenses represent the cost of living and other negative cash flows. Examples include: 1. Monthly rent 2. Car payments 3. Student loan payments 4. Utilities 5. Other living expenses See full list on eforms.com
A person’s net profit or loss is calculated by comparing the incoming cash flow with the outgoing cash flow. [Total Sum of Income ($) – Total Sum of Expenses ($) = Net Profit/Loss($)] See full list on eforms.com