Similarities & Differences Between Assets And Liabilities
1. Assets are the useful resources of the business that provide probable future benefits to the business owned by it while Liabilities are the rights of outsiders, like Sundry Creditors / Accounts Payable , Banks, and other financial institutions, to the assets of the business. 2. Assets mainly can be divided into two types, namely Current Assets and Non Current Tangible Assets / Fixed Assets / Long-Term Assets while Liabilities include Current Liabilities and No n Current Liabilities / Long-Term Liabilities . 3. Assets are recorded on Assets side on Balance Sheet while Liabilities are shown on Liabilities & Equity Side on Balance Sheet. 4. According to the Rules of Debit And Credit , the normal or usual balance for assets is debit. When these increase i.e. when we purchase these or added cost to them ( Capital Expenditure ), then we debit these one but when these decrease as sold out old furniture due to obsolescence or any oth...