What Are Assets And Liabilities?

Assets refer to properties owned by a concern and debts due to a concern from other parties. Assets are property and possession of a business. Assets can be buildings and machinery used to manufacture products. They can be patents or copyrights that provide financial advantages for their holder.

Liabilities are obligations a company owes to outside parties. They represent rights of others to money or services of the company. Example bank loans, debts to suppliers and debts to employees etc