Both assets and liabilities tend to play a vital role when it comes to ensuring the profitability of a business or its long-term viability. Assets are what a business owns and liabilities are what a business owes. Both are listed on a company’s balance sheet, a financial statement that shows a company’s financial health. There are different types of assets and liabilities. An asset is a resource owned or controlled by an individual, corporation or government with the expectation that it will generate a positive economic benefit. Common types of assets include current, non-current, physical, intangible, operating and non-operating. Correctly identifying and classifying the types of assets is critical to the survival of a company, specifically its solvency and associated risks. There are primary three types of liabilities - current, non- current and contingent liabilities. Liabilities are legal obligations or debt owed to another person or company. The presentation will give you a deeper understating on the topic.

Aparika Sharma

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