Accounting notes Book 1

Assets and Liabilities

All assets and liabilities of a business are summarised in a primary financial report called a balance sheet. 

This can also be known as the statement of financial position

Such a report will show what an enterprise owns (asset) and owes (liability)

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examples of Assets

Examples of an Asset:

  • Patent
  • Buildings 
  • Machinery 
  • Inventory 
  • Receivables

Patent, Buildings and Machinery are classed as intangible assets

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examples of liabilities

Examples of Liabilities:

  • Overdraft
  • Mortgage
  • Payables
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