Understanding the difference between assets vs liabilities is key to managing your finances. Discover essential concepts and examples in this guide!

Examples of long-term assets include equipment, goodwill and buildings. Liabilities are financial responsibilities a business owes to a third party.

A balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and shareholder's equity.

For example, assets which do not generate income, do not appreciate in value, but require payments drag your finances down like a liability. A boat, horse, or second home are examples of this.

Liabilities are also claimed by creditors who are obligated to repay. Liabilities are found below assets in the balance sheet section of the financial statement.

Running a business highlights the complexity of the tax code, making deferred tax assets (DTAs) challenging yet essential for minimizing tax liability.

The fixed-assets- to long-term-liabilities ratio uses assets because it is used to estimate how much collateral you have and if that will cover your debts if you default on your loans.

Working capital is the amount of money a company has available to pay its short-term expenses. Cash flow refers to the amount of money flowing in and out of the company.

Learn what contingent liabilities are, how they affect businesses, and see examples like lawsuits and warranties. Understand their impact on financial reporting.

For example, Coinbase reported $21.3 billion of assets and liabilities at the end of 2021, though it held $278 billion worth of cryptocurrencies and other currencies on behalf of its customers ...

Running a business highlights the complexity of the tax code, making deferred tax assets (DTAs) challenging yet essential for minimizing tax liability.