What is Investment ? What Is Asset ? What is Liabilites ?
Answers
Explanation:
thanks for question ok bye
Answer:
(i) Investment :- An investment is an asset or item accrued with the goal of generating income or recognition. In an economic outlook, an investment is the purchase of goods that are not consumed today but are used in the future to generate wealth. In finance, an investment is a financial asset bought with the idea that the asset will provide income further or will later be sold at a higher cost price for a profit.
(ii) Asset :- Assets can be anything of value owned by individuals or organizations, and they can be categorized in different ways.
Personal assets usually include cash and cash equivalents; real estate and land; personal property such as cars, boats, and jewelry; and investments.
For organizations, assets usually help sustain production and growth, and they're usually categorized and expressed in terms of their cash value on financial statements.
(iii) Liabilites :- A liability is a financial obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses. A liability can be an alternative to equity as a source of a company’s financing. Moreover, some liabilities, such as accounts payable or income taxes payable, are essential parts of day-to-day business operations.
Liabilities can help companies organize successful business operations and accelerate value creation. However, poor management of liabilities may result in significant negative consequences, such as a decline in financial performance or, worse, bankruptcy.
In addition, liabilities determine the company’s liquidity and capital structure.