What is the difference between assets and liabilities?

[Starmix]

Big companies deal with assets and liabilities and even the owners of small businesses. It is very necessary to know the difference between assets and liabilities. In accounting, assets are what a company owns, while liabilities are what a company owes. Liabilities are usually found on the right side of the balance sheet; assets are found on the left. The following are some examples of assets: inventory, buildings, equipment, and cash, whereas iabilities might include unpaid bills, outstanding loan balances, and credit card balances.

 

[Augusta]

Simply pur assets are things that the business owned. While liabilities are the Owings of a business

 

[Starmix]

Simply pur assets are things that the business owned. While liabilities are the Owings of a business

Yeah that is right and how we want to have many assets apart from our personal assets. I want many properties and no liabilities. They are a burden.

 

[Suba]

Both assets and liabilities also have tangible and intangible forms and everything must be included in the balance sheet. Apart from that, we can also use asset and liability data to measure the ability to pay short-term and long-term debt.

 

[Stardom22]

According to me the assets are the items that a company or business owns that can provide future economic benefits .
Liabilities on the other hand are the business' debts or obligations which you need to fulfill in the future

 

[Kross]

The main difference between assets and liabilities is that assets multiply and liabilities depreciate.

 

[eLdavis]

Assets are things we use in generating money, while liabilities on the other hand are things that naturally consume from us. I think this is a more simple term for anyone to understand.

 

[Starmix]

Assets could be a passive income. It could serve as owner's financial freedom someday once he wants to dispose it and acquire another and keep the proceeds for future use. A liability does not make us financially free.

 

[Kera]

You keep paying for owning liabilities. Assets get to the point that they pay you for owning and keeping them.

 

[Starmix]

We can sell the assets but liabilities not you keep on paying for them like paying bills and car maintenence, they are liabilities that must be taken care of.