Asset or Liability

Front

What is an asset?

Back

An asset is anything of value or a resource owned by an individual or entity that can provide future economic benefits.

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What is a liability?

Back

A liability is a financial obligation or debt that an individual or entity owes to another party.

Front

Is a mortgage an asset or a liability?

Back

A mortgage is a liability because it represents a debt owed to a lender.

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Is cash an asset or a liability?

Back

Cash is an asset because it is a resource that can be used for transactions.

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Is rent an asset or a liability?

Back

Rent is a liability because it is an obligation to pay for the use of property.

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Is furniture an asset or a liability?

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Furniture is an asset because it is a tangible resource owned by an individual or entity.

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Is a savings account an asset or a liability?

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A savings account is an asset because it holds money that can be accessed and used.

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What are examples of assets?

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Examples of assets include cash, real estate, vehicles, stocks, and equipment.

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What are examples of liabilities?

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Examples of liabilities include loans, mortgages, credit card debt, and unpaid bills.

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How do assets and liabilities affect net worth?

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Net worth is calculated by subtracting total liabilities from total assets. A positive net worth indicates more assets than liabilities.