What are Assets in Accounting?
Assets in accounting are a medium through which one can undertake businesses, either tangible or intangible, having a monetary value due to the economic benefits associated with it. Assets include property, plant and equipment, vehicles, Cash and Cash Equivalent, accounts receivables, and inventory.
Following are the characteristics of assets:
- It is owned and controlled by the enterprise.
- It provides a probable future economic benefit.
Liabilities are any debts your company has, whether it’s bank loans, mortgages, unpaid bills, IOUs, or any other sum of money that you owe someone else. If you’ve promised to pay someone a sum of money in the future and haven’t paid them yet, that’s a liability.