Asset and liability, which is which?

Question

In the dictionary the definitions are only more confusing. I would really like to know the difference between the two.

Answer 1

In general terms, an asset is something you own, a liability is something you owe.

Answer 2

In business, an asset is something of value that the business owns. Examples of assets are cash, vehicles and equipment. Simply put, assets add to the value of the business. Liabilities are sort of the opposite. Liabilities subtract from the value of the business. Examples of these are the company's power bill, loan payments and outstanding stocks. Basically, the term implies anything that the business is LIABLE (responsible) to pay.

Answer 3

An asset is something that has value or can produce income. A computer fits that example.

An liability is generally an obligation of some sort, be it a bill you've received, a debt you have. It's something you'll have to pay eventually.

Answer 4

Assets are either cash or things that can get you cash if you sell them (car or house you own, equipment, etc.). Liabilities are debts that you owe (loan payments, accounts payable, etc.). Hope that helps!

Ethan
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Answer 5

Assets can be viewed as expenses waiting to happen.
Liabilities are obligations to another party.

Answer 6

An asset: Anything that brings you money.
A liability: Anything that costs you money.

Answer 7

assests are generally things that are liquid and can easily be liquidated. liablities are can also be liquid but it is the offset...ex.....you have a car....you bought it for 20k its an assett if you paid more into the car and your not upside down. if you owe more than it would be considered a liabilty and the purest form. that would probably be the easiest way to explain it without getting into depth too much.....hope that helps you

Answer 8

asset is what you have
liability is what you owe