Net Worth Statement
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
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Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a net worth statement.
- Explain the purpose of a net worth statement.
- Explain what a net worth statement may be used for.
- Define asset.
- Define liability.
- Define net worth.
- Calculate net worth.
- Current
- Projected
- Determine how each of the factors may impact net worth over a period of time, such as:
- Asset values
- Liability values
- Cash flow surpluses / deficits
- Growth in asset values
- Reduction in asset values
- Growth in liability values
- Reduction in liability values
- Evaluate how each of the factors may impact net worth over a period of time.
- Interpret a change in net worth over a period of time.
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
---|---|---|---|---|---|---|---|---|---|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a net worth statement.
- Explain the purpose of a net worth statement.
- Explain what a net worth statement may be used for.
- Define asset.
- Define liability.
- Define net worth.
- Calculate net worth.
- Current
- Projected
- Determine how each of the factors may impact net worth over a period of time, such as:
- Asset values
- Liability values
- Cash flow surpluses / deficits
- Growth in asset values
- Reduction in asset values
- Growth in liability values
- Reduction in liability values
- Evaluate how each of the factors may impact net worth over a period of time.
- Interpret a change in net worth over a period of time.