Reference:
Lawrence J. Gitman and Michael D. Joehnk. (2005). Personal Financial Planning. P32-34.
Summary:
In Lawrence J. Gitman's and Michael D. Joehnk's book " Pepsonal Financial Planning", the authors tell us what assets are and how much money you have. In the authors opinion there are four kinds of assets. The first one is liquid assets, liquid assets are the things can change to cash and not devalued. the second is investments, and it's hard to know what is investments. Investments are pay for money fires and can get more money back after a long time. Third is real property, the real property is things used every day and can appreciate. The last is personal property, the personal property is things that can move but these can't appreciate. It will be devalued. In this articles, the authors also tell about the liabilities, and they tell you how much money you have and what to do with your libilities. Use different ways to do between long-term and short-term libilities. The authors also tell us what can be listed on a balance sheet and what can't.
