Asset and liability
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James onojah
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NEWSDIGIST
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Re: Asset and liability
Asset is what you hold on at any point in time as a reliable means of improvise to overcome your financial challenge. It could be in form of cash, valuables or possession that could be converted to cash at any point in time.
While liability is something that creates additional burden to you; instead of increasing your income it rather reaps you off of the one you have. Some businesses rather than making gain create additional problems to its owners. Take an instance of organization that makes profit but due to the fact that its manager has ignored payment of tax due to Government, its tax burden accumulated. If the Government pulls such organization to court, the accumulated tax is a liability that has turned to be a burden to such organization.
While liability is something that creates additional burden to you; instead of increasing your income it rather reaps you off of the one you have. Some businesses rather than making gain create additional problems to its owners. Take an instance of organization that makes profit but due to the fact that its manager has ignored payment of tax due to Government, its tax burden accumulated. If the Government pulls such organization to court, the accumulated tax is a liability that has turned to be a burden to such organization.
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