Assets and liabilities are two important financial terms used in accounting. They refer to different aspects of a company's finances, such as ownership, debt, and obligations. In this article, we will explore the difference between assets and liabilities and how they affect a business.
About Difference Between Assets And Liabilities
|Things owned by a company or individual.||Debts and obligations owed to others.|
|Include cash, investments, property, etc.||Include loans, accounts payable, etc.|
|Increase on balance sheet with purchases.||Decrease on balance sheet with payments.|
|Used to generate income.||Result in expenses.|
|Represents the value of a business.||Represent what is owed by a business.|
|Help finance operations.||Reduce cash flow.|