Question

two example of variable and fixed income. why would you prepare for a net worth statement?

two example of variable and fixed income.
why would you prepare for a net worth statement?

Homework Answers

Answer #1

Fixed Income Securities will include- Certificate of deposits, Money markets, and preferred shares

Variable Income Securities will include- Floating Rate notes, Equities

why would you prepare for a net worth statement?
Basically Networth will be the calculation of Total assets exceeds liabilities
It will helpful for the Person/Entity to know the current financial situation and actions and financial decisions to be taken for the future.
It will help to plan long-term financial goals
We can check the level of Changes in the prices of the assets owned.
a statement of net worth will be required to borrow the funds from institutions.

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