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What is the difference between asset and liability? Buffalo
- Location: Buffalo, Buffalo, New York, United States
Assets are things you own that have value and can generate future economic benefit (e.g., cash, buildings, investments), while liabilities are your debts or obligations you owe to others (e.g., loans, credit card balances, accounts payable). Essentially, assets put money in your pocket or add value, whereas liabilities take money out by representing future payments, and both are key components on a balance sheet, with assets minus liabilities determining your net worth or equity.
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