What do you mean by assets and liabilities?
Assets are what a business owns and liabilities are what a business owes.
Both are listed on a company’s balance sheet, a financial statement that shows a company’s financial health.
Assets minus liabilities equals equity, or an owner’s net worth..
What are some examples of liabilities?
Here is a list of items that are considered liabilities, according to Accounting Tools and the Houston Chronicle:Accounts payable (money you owe to suppliers)Salaries owing.Wages owing.Interest payable.Income tax payable.Sales tax payable.Customer deposits or pre-payments for goods or services not provided yet.More items…
What is the meaning of liable?
adjective. legally responsible: You are liable for the damage caused by your action. subject or susceptible: to be liable to heart disease. likely or apt: He’s liable to get angry.
What are liabilities in life?
A liability is money you owe to another person or institution. A liability might be short term, such as a credit card balance, or long term, such as a mortgage.
Is rent asset or liability?
Rent expense management pertains to a physical asset, such as real property and equipment. A company may lease, the other name for rent, an intangible resource from another business and remit cash on a periodic basis.
What are liabilities?
A liability is something a person or company owes, usually a sum of money. … Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.