Glossary - Goal Setting

Asset
Anything with commercial value that is owned and adds to one’s net worth. Usually refers to items that can be sold and converted to cash.

Balance sheet
An accounting statement that shows the amount of a company or individual’s assets, liabilities, and net worth on a certain date.

Capital
Cash or other resources accumulated and available for use in producing wealth. Assets that are invested in a venture.

Debt
Money owned; also known as a liability.

Equity
Ownership interest in an asset after liabilities are deducted.

Liabilities
A financial obligation, debt, or claim against a person or institution.

Market value
The amount a seller can expect to receive on the open market for merchandise, services, or securities.

Net worth
Total assets minus total liabilities of an individual or company.