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what is the difference between asset and liabilities?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 usha asked over 2 years ago

what is the difference between asset and liabilities? What do you mean by net assets? How it is related to assets and liabilities?

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7 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> Difference between asset and liabilities **Assets** -Accounting standards define an asset as something your company owns that can provide future economic benefits. Cash, inventory, accounts receivable, land, buildings, equipment -- these are all assets. -An asset is something which an individual or a company owns. -The economic value of anything which is owned by the company is known as Assets. -Assets are those objects which are owned by the company having monetary value, immaterial of tangible or intangible. -Types--Current Assets, Non-Current Assets. -Assets = Liabilities + Owner's Equity - Example-- Building, Cash, Goodwill, Account Receivable, Investments etc. **Liabilities** -Liabilities are your company's obligations -- either money that must be paid or services that must be performed. -The economic value of any type of debt or obligation owed by the company to any other individual or organization is known as liability -liabilities are those responsibility arising out of past transactions which is to be made payable by the company in the near future through assets owned by the entity. -ccounting divides liabilities into two broad categories which are- Non-Current Liability Debentures Long Term Loans Current Liabilities Short term Loan Account Payable Bank Overdraft Outstanding expenses ** > `Key Differences Between Assets and Liabilities` ** -In general assets means anything which a company or individual owns while liabilities means anything which a company or an individual owes. -In accounting context, assets are the object which can be transformed into cash in the future, whereas liabilities are the debt which is to be settled in the future. -Assets are classified into current and non-current assets. On the other hand, Liabilities are classified into current and non-current liabilities. -Examples for assets – Trade Receivables, Building, Inventory, Patent, Furniture, etc. and Examples for liabilities- Trade Payables, Debentures, Bank loan, Overdraft etc.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Assets = Liabilities + Owner's Equity Example-- Building, Cash, Goodwill, Account Receivable, Investments etc. Liability-- A liability is something which an individual or a company owes. Liabilities are the debt or responsibility or an obligation owed by the company, having monetary value. types--Current Liabilities, Non-Current Liabilities. Example-- Long term borrowings, Bank Overdraft, Account Payable etc.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 shruthi answered over 2 years ago

HI USHA **`DIFFERENCE BETWEEN ASSETS AND LIABILITIES`** **`ASSETS`** assets are property or legal rights owned by the individual or business to which money value can be attached assets are depriciable as well as non depriciable assets are th future economic benefits , th rights , which are owned and controlled by organisation or individual. **classification**- fixed assets current assets tangable assets intangable assets **examples** money owed by debtors stock of goods furniture cash, machines building **`LIABILITIES`** liabilities means the amount which the business owes to outsiders. liabilities are non depriciable liabilities are debts, they are amount owed to creditors **classification**- long term liabilities current liabilities **examples**- creditors bills payable bank overdraft outstanding liabilities ALL THE BEST

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered over 2 years ago

**DIFFERENCE BETWEEN ASSETS AND LIABILITIES** ASSETS An asset is something which an individual or a company owns. Assets are those objects which are owned by the company having monetary value, immaterial of tangible or intangible. types--Current Assets, Non-Current Assets. Assets = Liabilities + Owner's Equity Example-- Building, Cash, Goodwill, Account Receivable, Investments etc. Liability-- A liability is something which an individual or a company owes. Liabilities are the debt or responsibility or an obligation owed by the company, having monetary value. types--Current Liabilities, Non-Current Liabilities. Example-- Long term borrowings, Bank Overdraft, Account Payable etc. Thanks

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Open uri20170510 32134 1jb1dwr?1494421680 Vaibhav answered over 2 years ago

What is the difference between assets and liabilities? The main difference between assets and liabilities is that assets provide a future economic benefit, while liabilities present a future obligation. An indicator of a successful business is one that has a high proportion of assets to liabilities. There are several other issues relating to the difference between assets and liabilities, which are One must also examine the ability of a business to convert an asset into cash within a short period of time. Even if there are far more assets than liabilities, a business cannot pay its liabilities in a timely manner if the assets cannot be converted into cash. The aggregate difference between assets and liabilities is equity, which is the net residual ownership of owners in a business.

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered over 2 years ago

Hiiiii Friend....... Thanks & Regards,

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Data?1494421730 rohit awasthi answered over 2 years ago

Dear Friend > Difference between asset and liabilities Assets Assets are items owned by the business and money owed to the business. Asset are economic resources that have expected future benefits to the business. In the other words, assets are what the organisation owns and /or controls. Examples of assets are:  Buildings  Equipment  Inventory (items to be used in manufacture or to be sold)  Trade receivables (amounts owed to the business by credit customers)  Money in the bank  Money held in cash Liabilities Liabilities are amounts owed by the business to other organisations or people. Liabilities are "outsider claims" consisting of economic obligations, or debts, payable to outsiders. Thus liabilities are what the organisations owes, and the outsiders to whom the debts are due are creditors of the business. Examples of liabilities are:  Trade payables (amounts owed by the business to credit suppliers)  Loans (either from a bank or another organisation)  Bank overdraft

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