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Title: Difference between assets and liabilities
Description: In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties
Description: In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties
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DIFFERENCE BETWEEN ASSETS AND LIABILITY
Whether you're a private individual looking to achieve better wealth management, or an
entrepreneur who needs to operate a financially sustainable business model, knowing the
difference between assets and liabilities is very important
...
The economic value of an item which is owned by an enterprise, or an individual is referred
to as assets
...
Liabilities on the other hand are the accountabilities of an entity or individual that are rising
out of previous transactions which are payable through the assets possessed by the enterprise
or individual
...
Depreciation is the
erosion caused primarily because of the regular usage of machines, land, and building
...
Depreciation can only apply to assets as they
generate income and hence liabilities are non-depreciable
...
Relationship Between Assets and Liabilities
Although assets and liabilities are basically the opposite of each other, they can share an
interlinked relation
...
However, you will also take on the liability of the mortgage
...
It can be easy to assume that assets are good, and liabilities are bad
...
This is because in calculating equity
we subtract total liabilities from our total assets
...
Title: Difference between assets and liabilities
Description: In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties
Description: In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties