Bookkeeper Questions and Answers

What is the difference between liability and asset?

Liability and asset are two completely different things but without them it is impossible to successfully run a company. Assets are generally things that add value to the reputation to the company. There can be fixed assets like land, building, and current assets like stock, cash, debtors, inventory and bill receivable. Intangible assets can also be included like goodwill and patients. Liability is something that the company owes to other people, and it includes bill payable, bank loans and creditors.