LO 3 / ASSESSMENT STANDARD 5
Explains the concept and analyses
a statement of net worth
PRACTICAL DEMONSTRATION / NAME: ______
GRADE: ______
DATE: ______
ACTUAL MARK
%
LEVEL

MARK ALLOCATION: 90

EDUCATOR/

PARENT/GUARDIAN

Refer to the Statement of net worth. Analyse it to answer the questions that follow

  1. Whose Statement of Net Worth are you analysing? ______(1)
  2. Why do both their names appear on the statement of net worth? ______(2)
  3. When was the Statement of Net Worthprepared? ______(1)
  4. Give four possible reasons for preparing a Statement of Net Worth. ______(4)
  5. What is the formula for calculating ones Net Worth? ______(2)
  6. What is the total value of their non current assets? ______(2)
  7. How many properties do they own and in how many years will each one be paid in full? ______(2)
  8. What is the total value of their current assets? ______(2)
  9. Discuss the performance of their investment shares. ______(4)
  10. What is the total value of their non current and current assets? ______(2)
  11. Describe 3 (three) possibilities of where they may be keeping their “cash on hand”______(3)
  12. Discuss two waysthis family would be able to come up with R50000,00 cash in the case of an emergency. ______(4)
  13. What is “Life insurance” and why do you think their life cover is so high? ______(4)
  14. What is the total surrender value of the two life policies and what does “surrender value” mean? ______(3)
  15. What is the total monthly payments on their “instalment sale and lease agreements” ______(2)
  16. What is their total credit card limit? ______(2)
  17. What is their total credit card debt (Amount owing)? ______(2)
  18. Which credit card is the most expensive and why do you say so?______(3)
  19. What kind of tax is owed to the Receiver of Revenue, by who and how much? ______(2)
  20. Calculate their total Liabilities. ______(2)
  21. Calculate their net worth. (Show the formula)

(5)

  1. Do they have a surplus or deficit and by how much? ______(2)
  2. They therefore have a positive/negative net worth. (Underline the correct answer) (1)
  3. Is this family over indebted? State your reason? ______(3)
  4. Make any 3 (three) suggestions that will help this family increase their net worth over the next year. ______(6)
  5. On a separate sheet of paper, draw up your own simplified Statement of Net Worth.
  6. With the use of two columns show a list and values of your assets (e.g. cell phone, bicycle, cash, savings, money owing to you etc.) and liabilities ( monies you owe)
  7. Calculate your net worth (Indicate a surplus or deficit)
  8. Analyse your own Statement of Net Worth and discuss two ways in which you can increase your Net Worth over the next six months to a year.

CRITERIA / YES
6 / MOSTLY
4 / NO
0
1. The Statement of Net Worth has a heading and date / -
2. The learner clearly shows an understanding of the
differences between assets (current and non
current) and liabilities (long and short term)
3. The learner has accurately calculated his/her
Statement of Net Worth. The learner correctly
indicated a surplus or deficit.
4. The learner is able to critically analyse his/her
personal Statement of Net Worth. The learner is
able to discuss legitimate means to increase
his/her Net Worth.

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