Personal Financial Statement and Interpersonal Communication and Behavioral Finance (Essay Sample)

(Personal Financial Statement) & (Interpersonal Communication and Behavioral Finance)
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Personal Financial Statement
Murray (2020) defines a personal financial statement as a spreadsheet or document explaining a person's financial position. In other words, a personal financial statement includes personal information such as address and names, along with an explanation of total liabilities and assets. Deduct liabilities from resources to see the total assets (Murray, 2020). Individual new worth is calculated by subtracting liabilities from assets. Net value can fluctuate depending on how more assets or liabilities a person has. Personal financial statements are useful for a credit application, tracking of personal goals, and measure wealth. 
A person's financial statement explains their new worth. Individual net worth reflects what to be obtained after selling off all their assets and paying off all their liabilities (Murray, 2020). As a result, Personal financial statements are usually used when a person is applying for credit like mortgage or loans. Credit officers use financial statements to increase their perspectives and viewpoints into making a conversant credit decision (Murray, 2020). Therefore, financial statement helps an individual provide financial proof for the credit or give information on personal assets as collateral.