Question

difference between liability and asset in easy word.

Answer 1

Liability means we have to pay.

Assets which we are having or which are purchased by a business man.

Answer 2

1)meaning- assets are property owned by business. liabiity is amount which has to be paid.
2) depriciation- may or may not br charged on assets. no depriciation on liabilities.
3) benifit/ debt- assets are future benifit where liabilities are debt.
4) location- aseets are on left side and liabilities on right side.
5) classification- asets:- 1)current assets, 2) non current assets, 3) tengible asset,4) intengible asset, wasting assets. Liabilities:- 2) long term liabilities, 2) short term liabilities.
6) examples- assets:- debtors, cash, furniture etc. Liabilities:- creditors, capital etc.