What is a personal financial statement?

A personal financial statement is a comprehensive summary that provides an overview of an individual's financial position at a specific point in time. It includes a detailed account of assets, which are items of value owned by the individual, and liabilities, which represent the debts owed. By aggregating these components, the statement ultimately calculates the net worth, which is the difference between total assets and total liabilities. This holistic view allows individuals to assess their financial health, track their progress over time, and make informed decisions regarding investments, budget planning, and financial strategies.

In contrast, focusing solely on debts owed or monthly expenses would not provide a complete picture of an individual’s financial status. Similarly, calculating potential investment returns does not encompass the entirety of a person's financial position, as it excludes many critical aspects such as existing assets and liabilities. Therefore, option C accurately encapsulates the multifaceted nature of a personal financial statement, making it the correct answer.