Section outline

  • Learning Intentions

    • To explore how businesses record financial information.
    • To experience running a business as a team in a simulation scenario
    Success Criteria
    • Able to record transactions in a Statement of Affairs
    • Have run a simulated business as a team.

    Statements of Affairs

    A Statement of Affairs shows the assets, liabilities and net worth of an individual or household at a moment in time. 
    Assets are owned items that provide some benefit and are controlled by you (eg kitchen table, family car).
    Liabilities are amounts that you owe others and have to repay (eg mortgage, overdraft).
    Net Worth is the value of what you own less the value of what you owe others. You would hope that Net Worth would increase over time!

    When applying for a loan or credit card, banks will ask for the information in a Statement of Affairs.

    Have a go at the questions in Google Classroom on Statements of Affairs.

    Extension:

    Look up Income and tax rates in other countries. Find out what is meant by a tax haven and find examples of these - find them on Google Maps.

    Find out what's the difference between a debit card and a credit card?

    Research what interest rate you would pay on a mortgage and would receive on savings with different banks. 
    How does this compare with the growth rate of other investments, such as shares?