Question

difference between assets and liabilities taking an hypothetical example.state classification of assets and liabilities...
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Answer 1

assets give us benefits in future and it is the claim of honour and creditors and it shows debit balance but liability already gives benefits in present, it shows credit balance

Answer 2

ASSETS
      ''An asset is something that an entity owns, a resource that it controls or something that is owed.''
e.g inventory, cash, debtors, patent rights etc

Assets should be classified into two main categories:
        1- Current Assets
        2-Non- current assets


LIABILITY
      ''A liability is an amount that the entity owes to another party.''
e.g Trade payables, Bank loans etc

Liabilities should be classified into two main categories:
       1-Current liabilities
       2-Non-current liabilities