Authentic Learning Task (ALT) #1: Assets, Liabilities, Net Worth, and Equity

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Overview

In this Authentic Learning Task (ALT), you are introduced to a balance sheet, consisting of assets, liabilities, and the resultant net worth or equity. You construct a personal inventory (or a fictional inventory) listing of your properties and obligations and create a valuation of each category. You then list examples of your personal assets and liabilities to create a final calculation of your net worth. Finally, in teams, you construct and present a balance sheet for a small startup business, Harry’s Hot Dog Stand.

After completing this ALT, you should be able to demonstrate the following competencies:

• Recognize the basic elements of financial reporting
  (Comp. 1).
• Interpret basic financial data and reports (Comp. 2).

Materials and Equipment
No materials or equipment are required for this ALT.

Safety and Disposal
No special safety or disposal procedures are required.

Pre-Activity

To prepare for the activity:

• Read about the basics of financial management and basic accounting.

Assets, Liabilities & Net Worth (Equity)

The history of financial management touches on accounting terms used in a balance sheet. These accounting terms are used in the financial records for all businesses and these records provide the accounting department with a roadmap for the company to follow. The balance sheet consists of assets, liabilities, and net worth (equity).

Click here for additional information about assets, liabilities and net worth (equity).

Self Assessment

Complete the following learning object about calculating monthly expenses.

Activity

In your team, perform the following steps to complete the activity:

1. Refer to Information Sheet: Just What Are Assets and Liabilities? and complete Data Sheet: Personal Balance Sheet.
2. Share and discuss your results from Data Sheet: Personal Balance Sheet.
3. Following the discussion, your facilitator will place you and the other participants into teams of three or four.
4. Complete the tasks on Instruction Sheet: Establishing Harry’s Hot Dog Stand.
   

Your team should now post its results from the activity to the Discussion Board.

Assignment
There are no instructions to prepare for ALT #2: Income and Expenses.

Assessment
Your facilitator may use Assessment Sheet: Assets, Liabilities, Net Worth, and Equity to evaluate your results from the activity and your posting to the Discussion Board.

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