What's the difference between an asset and liability?

Answer 1

An asset is something you own (cash, bank accounts, a debt owed you, a house, etc.).

A liability is something you owe (a credit card balance, the balance on a car loan or a mortgage, etc.).

Your net worth is the difference between the value of your assets and your liabilities.

Answer 2

think of an asset as a positive and a liability as a negative. One makes you money , the other drains it. some investments can be both at the same time. But that's for another lesson.

Answer 3

An asset is anything owned by a business or individual that has commercial or exchange value. (and from which future profits are expected.

A liability is an obligation to pay money to another party.

Answer 4

asset is total equity and liability; or in other words, asset is claim for the owner of a company.
liability is a creditor's claim

if you look at the balance sheet form, asset (activa) reflects the use of funding originated by passiva (liability and total equity)

Answer 5

When you subtract

Assets 50,000.00 - Liabilities 20,000.00= Net Income 30,000.00 is the difference

Answer 6

An asset is something you OWN.

A liability is something you OWE.

Answer 7

an asset increases value,liability decreases value

Answer 8

Asset is something of value that you own, house, car, furniture, equipment, stock, retirement plans etc.

Liability are the amounts you owe. Mortgage, credit cards, car loans, student loans, etc.

Answer 9

asset are the money or home , cars that you own, liabities are the debt you owe out like credit cards you living expenses such car note , mortgage payment child support any debt that comes out of your pay.