This week we learned about financial statements and their role in accounting for the finances of a business. You're starting to learn about "the language of business." For this week's homework assignment, you will be asked to create a personal financial statement for your personal finances. For privacy's sake you do not use your actual financials in this exercise, but the figures you do use should be realistic. What Is a Personal Financial Statement? A personal financial statement is a document that shows your personal assets and liabilities as well as your personal net worth. The equation here is that Assets minus Liabilities equals Net Worth. If you are married, the personal financial statement may be a combination of your assets and those of your spouse. Your assets are your ownership of items like a home, car, or investments. (For example, if you have a mortgage on a home, it is considered both a liability and asset. You are the owner of the home; the bank is the lien holder until your loan is paid off. The current value of the home is what you retain in asset, and the loan itself is your liability. The same goes for a