“My mortgage is an asset because I live in the house.”
Usage Entry 1109 / 1350 60-second read
Asset vs. Liability
Something owned that has value versus something owed.
The comparisoni
“My mortgage is a liability — the loan I owe; the house is the asset.”
The ruleii
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ASSET = value owned. LIABILITY = value owed.
ASSETS are what a person or company owns that has economic value (cash, property, investments). LIABILITIES are what they owe (loans, debts, accounts payable). A balance sheet has both.
Memory aidiii
Remember it like this
Own = asset. Owe = liability.