assetsliabilities
Assets and liabilities are fundamental concepts in accounting and finance, representing the financial position of an individual or entity. An asset is a resource with economic value that an individual or entity owns or controls with the expectation that it will provide future benefit. Examples include cash, investments, property, and equipment. Assets are typically categorized as current or non-current. Current assets are those expected to be converted into cash or used up within one year, such as accounts receivable and inventory. Non-current assets, also known as long-term assets, are those with a useful life of more than one year, like buildings and machinery.
A liability, conversely, is an obligation that an individual or entity owes to another party. It represents
The relationship between assets and liabilities is crucial for understanding financial health. The fundamental accounting equation