What is the difference between a company's assets and liabilities?

Verified 27 June 2023 - Legal and Administrative Information Directorate (Prime Minister)

Assets and liabilities are the two parts of a company's assets and liabilities. They give an indication of the value of the company.

They appear as a 2-column table in the accounting balance sheet company.

The asset of the company corresponds to the company's entire heritage. Examples include buildings, equipment, receivables, patents filed, etc.

Among all the assets, a distinction must be made fixed assets (goodwill, including equipment) and current assets (e.g. inventory, personnel, receivables, bank balance credit).

The indebted corresponds to the means of the company to finance its assets. It consists of equity (fixed liabilities) and liabilities (current liabilities).

In an accounting balance sheet, the assets must always equal the liabilities.


When the liquidity of the liability exceeds that of the asset, the company is cessation of payments.

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