in its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out!
Answers & Comments
Answer:
Assets
Liabilities
What does it mean?
Assets are items possessed by a business that will provide it benefits in future. Liabilities are items that are obligations for a business
Impact of Depreciation
Assets are depreciable in nature Liabilities are non-depreciable in nature
Formula used
Assets = Liabilities + Shareholder’s Equity Liabilities = Assets – Shareholder’s Equity
in its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out!