What is Difference B/w Assets & Liabilities

-

 

Difference between assets and liabilities





In business terms, assets and liabilities often aandppear together. They are the two fundamental elements that shape the financial health of your business and make up your company' balance sheet.

What are assets?

Assets are resources (tangible and intangible) that your business owns, and that can provide you with future economic benefit. They add value to your business, they can help you meet your commitments and increase your equity.

See different types of business assets.

What are liabilities?

Liabilities are your business' debts or obligations which you need to fulfil in the future. This is the money you need to repay, the goods you need to provide or the services you need to perform. These responsibilities arise out of past transactions and need to be settled through the company's assets.

Both assets and liabilities are reported on the company's balance sheet. While some assets are depreciable, liabilities are not - they do not diminish in value over time. See more on depreciation of assets.

Examples of assets and liabilities

Similarly to business assets, there are two broad categories of liabilities. Depending on their maturity, liabilities can be either current or non-current.

Current liabilities are those due within the present accounting year, such as:

  • bank overdrafts
  • accounts payable, eg payments to your suppliers
  • sales taxes
  • payroll taxes
  • income taxes
  • wages
  • short term loans
  • outstanding expenses

Non-current liabilities are those financial obligations that are not due for settlement within one year during the normal course of business. Also known as long-term liabilities, they include:

  • bonds payable
  • capital leases
  • mortgage debt
  • long-term borrowing
  • pension liabilities
  • deferred revenues and taxes
  • securities, such as stock shares or bonds
  • notes payable

In the balance sheet, you need to take into consideration both your assets and your liabilities to accurately reflect your business' financial position. See more on balance sheets

Comments

Post a Comment

Popular posts from this blog

Electricity ka Bill ya Zor ka jhatka pakistan main

-
Image
Ghandi ne kaha tha k india per hakoomat kerni hai to cycle or cinema ka ticket sasta ker do . pakistan main hakoomat kerni hai to bijli ka bill musifana kerna hoga. itne ajeeb taxes k tex expert bhi heran.  awam ka khoon choos lia bijli k bill ne. Garmian shuro hote hi load sheding ka azab bhi shuroo. pakistanieo ko nafsiati mareez banane main bijli k bill ka hisa nisf se kam nahi .waade sub kerte hain mager is aziat se abhi tak chutkara koi nahi dila saka. ab agle election main isi ko le ke vote mile gey . main pakistan se bohat pyar kerta hoon mager jub 13 ghante light nahi hoti to main pakistan chorne k bare main sochta hoon or unhain khush naseeb samjhta hoon jo yahan se nikal gaye.
Read more

پیسہ ڈبل کرنے والا ڈبل شاہ کون تھا۔ who was Double shah .

-
Image
Sibtul Hasan Shah, alias Double Shah (Urdu, Punjabi: ڈبل شاہ; born 3 March 1964-death 30 october 2015), was a scam artist in Pakistan, who gained notoriety by starting and managing a Ponzi scheme. Originally a school teacher and a resident of a lower middle class neighborhood in Wazirabad, he was born in Koloke, a small town of Sambrial Tehsil, in Sialkot District, Punjab. Later on he was convicted and sentenced to 14 years imprisonment. It was reported in the Pakistani newspaper, Jang, that he died in prison on October 30, 2015. Shah had college degrees and was a science teacher at Government High School, Nizamabad until 2005. After taking a leave from his job, he went to Dubai where he stayed for about six months. Upon his return, he left his job and approached his colleagues and neighbours, asking them to give him their savings, which he would return in double in just 15 days. The first person to trust him was his next-door neighbour who owned a marble business named Javed Marbl
Read more

sharab or shabab in pakistan kon bechta hai kon khareedta hai

-
Image
Pakistan ek Islami Mulk. Mager yahan sharab khareedna koi mushkil baat nahi . Chand maheene pehle tak to sirf Hyderabad k By pass wale Sharab khane per to Sharab khareedne walon ki lines lagi hoti thi . Jin main 80%  Muslim Khareedar intahai be sharmi balke fakher mehsoos kerte hoye allah k hukm ki khilaf warzi kerte paye jate the . Non muslims k aar main malkan bhi muslim or khareedar bhi muslim . Reh gaye non muslim jin k naam per license jari hote hain .or( license jari kerwatr bhi muslim.politicians hain or apna commession poora wasool kerte hain ) wo bechare to Desi sharab pee pee kar mar rahain hain un ki aksariat to whiski or wine kahan khareed sekti hai  un main to bus ek tabka jinhain Deewan ya Banya kehte hain wo imported sharab peete hain. Phir hua yoon k Court ne laga di pabandi sharab khano per sindh . Lo janab sharab ho gai mehangi milti ab bhi hai 500 wali whiski ki pent ab 700 main dastyab hai . Home delivery bhi dastyab hai ap k shanakhti card dekh ker ap ko pakistan
Read more