What are assets and liabilities?

Question

447 viewsDecember 4, 2012Accounting

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Michaud December 2, 2012 0 Comments

What are the definitions for the assets and the liabilities based on the generally accepted accounting principles and the international standards?

1 Answer

score 0 · Answer 1 · 2012-12-02T16:46:40+00:00

An asset is expected to flow economic benefit to the company. It has to be measurable (the benefit) and certain. A liability is expected to have economic benefit flow from the company to another person or company. It also has to be measurable.