Difference between assets and liabilities

Difference between assets and liabilities : In These blog Learn what is assets and liabilities Definition and concept of assets & liabilities. In other words, assets are items that benefit a company economically, such as inventory, buildings, equipment and cash. Assets are a resource of business that provides future economic benefits and also add a business that helps you to meet committees. They will also increase equality. The liabilities are business that fulfills the future. The money is used to repay the goods that are used to provide services to perform. Responsibility arises due to past transactions and needs through company assets.

Assets

1) They are items possessed by a business that provides benefits in the future.

2) The assets are depreciable in nature.

3) The formula used is as assets are equal to the liabilities plus shareholders equality.

4) They are responsible for the cash flow generation for a business.

5) They will add value to the company and increase the equality of the company.

6) They are financial resources that provide economic benefits.

7) It is depreciable. The position in the balance sheet is right.

8) They have types such as current assets and non-current assets.

9) Examples are Cash, Building, and investments.

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Liabilities

1) They are obligation items for a business.

2) The liabilities are non-depreciable in nature.

3) They are equal to assets minus the shareholder's equality. Also responsible for the outflow of cash from the business.

4) The liability decreases the company value and equality.

5) They are obligations that have paid off in the future.

6) It is non-depreciable. The position in the balance sheet is right.

7) It has types as current liabilities and non-current liabilities.

8) Examples are as Bank overdraft and account payable.


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