In the subject of accounting if you own something before starting a business would it be an asset or liability

Answer 1

If you own something BEFORE starting a business, it would be an asset of the business only if you introduce it INTO the business as part of owner's equity, and not otherwise. For e.g. you may have owned a car before starting a business, and you wish to bring it into the business. Your entry:
Dr Motor vehicle
Cr Owner's equity

Your problem would be how to value your car cos it's not brand new. You need to bring it in at fair value.

Answer 2

You obviously don't know the basic definitions of accounting.

Anything that a company or individual owns is and asset- regardless of how they are financed. Assets are financed (paid for) with equity, liabilities, or both.

When you start a business or have an ongoing business, you may need to make periodic capital infusions by:
1. making an equity or capital contribution
DR cash or asset if a non-cash asset is transferred
CR paid in capital or orther equity account as appropriate

or

2. extend a loan to to the company in exchange for cash or some other asset

DR cash or other appropriate asset account
CR loan payable


Get yourself a used intro to financial accounting textbook from half.com or amazon.com- you really need it if you are asking questions like this.

Answer 3

The standard definition of an asset is something you own that is useful or worth something. The real definition of an asset is something you own that earns you income.

Although a bank would consider your car to be your asset, in reality your car is a liability because you must pay insurance on it, you must register it, take it for scheduled maintenance at the autoshop and we must gas/fuel our cars. A car is definately not an asset, unless you're a cab driver or delivery guy who makes money from your car.

Answer 4

If it is something you own, it is an asset.
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