What Is The Difference Between Assets And Liabilities?

An asset is tangible and intangible property that you own that can be converted into cash. A liability is basically a legally binding obligation to settle a debt. Good example would be my house being an asset because i can sell it for cash and a liability would be the loan I have out for the house.

Assets are the property of a business which can be convertible into cash, whereas, liabilities are those amount which are accrued on you whether its a loan, or unpaid expenses or advances from customers or unpaid amount of assets. So, in brief, Assets are the property,convertible into cash, and liabilities are the payables of company or organization.

For example, Purchase assets on account.
Unpaid utility bills.
Borrow loan from bank.

Assets are what the company owns and
liabilities are what the company owes to its customers