What is a asset? What is a liability?

Answer 1

Look at it this way: asset= what you have of value, liability= what you owe and the final piece is equity= the ownership that you have.

Answer 2

Money wise: an asset have a positive value to it and in time may grow or maintain its value therefore you may profit from it by selling or borrowing against your asset or breaking even. ex: a house. a liability is something that depreciates therefore the money worth is less than the purchased price if you sell it you will not make a profit ex. buying a new car you cannot sell it for more that you purchased it for. liability can also be something you have but can afford to maintain even though in a few years it may be worth a lot but at present it is costing you more money than you can afford to spend. so you decide to sell it before you empty out your bank account ex. a collectible item like a rare car that needs insurance, and specialty parts and mechanic to keep it in good shape. after all the money you spend buying the car and maintaining it on a monthly basis, you may need to sell it below market value to get fast money.

Answer 3

An asset is any type of property that you own, and adds to your wealth. A liability is something you owe, and adds to your debt.

Answer 4

An asset= anything in a bank account (checking, savings, CDs), retirement account (IRS, 401ks), investments (stocks, bonds, municiple bonds)

liability= rent, mortgage, car payments, insurance, anything on your credit report (can be a mortgage again, credit cards like AMEX, Citi, Chase, Capital ONe)

Answer 5

Asset: resources owned by a business
Liabilities: rights of credtiors that represent a legal oblgation to repay an amount borrowed according to terms of borrowing agreement.

Answer 6

an asset is a phyiscal or intangible item worth value and a liabilty is a debt or something with a negative value

Answer 7

ASSET MAKES YOU MONEY
LIABILITY TAKES YOUR MONEY