A personal financial statement lists all assets and liabilities of a person or couple.
A person’s net worth is determined by subtracting his liabilities from his assets - positive net worth shows more assets than liabilities.
Net worth may fluctuate over time as the value of assets and liabilities changes.
Personal financial reports are useful for tracking status and goals, as well as applying for a loan.
Although they may be included in the personal financial statement, income and expenses are usually placed on a separate sheet called the income statement.