Saved Bookmarks
| 1. |
Different between assets and liabilities? |
| Answer» \tAssetsLiabilities\xa0What does it mean?Assets are items possessed by a business that will provide it benefits in future.Liabilities are items that are obligations for a businessImpact of Depreciation\xa0Assets are depreciable in natureLiabilities are non-depreciable in natureFormula usedAssets = Liabilities + Shareholder’s EquityLiabilities = Assets – Shareholder’s EquityImpact on cash flowIt is responsible for generation of cash flow for a businessIt is responsible for outflow of cash from a businessDifferent TypesThe different types of assets are tangible, intangible, current and noncurrentThe different types of non-current liabilities are long term(non-current) and current liabilitiesExamplesCash, Account Receivable, Goodwill, Investments, Building, etc.,Accounts payable, Interest payable, Deferred revenue etc.\t | |