Assets vs Liabilities — Difference (with Table)
Assets vs Liabilities compared side by side — a 6-row comparison table and 4 key points. Class 11 Social Science, free and no sign-up.
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TL;DR: Assets vs Liabilities compared side by side — a 6-row comparison table and 4 key points. Class 11 Social Science, free and no sign-up.
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The main difference between Assets and Liabilities: Assets are items of value owned by a person or business. Liabilities are debts or obligations owed to others.
Assets vs Liabilities — Comparison Table
| Basis | Assets | Liabilities |
|---|---|---|
| Ownership | Owned by the person or business | Owed to creditors or lenders |
| Value | Add value to net worth | Reduce net worth |
| Example | House, car, bank balance, stock | Loan, mortgage, credit card debt |
| Balance Sheet | Left side of balance sheet | Right side of balance sheet |
| Liquidity | Can be converted to cash | Must be paid from cash or assets |
| Accounting | Assets = Liabilities + Capital | Part of accounting equation |
Key Points
- Assets are what you own, liabilities are what you owe
- Net worth equals assets minus liabilities
- Current assets are liquid, fixed assets are not
- Short-term liabilities due within one year