What is Asset? & What is Liabilities?

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Don't "rationalize" something to be an asset. Your car that gets you to your clients for your sales job is not an asset. It either puts money in your pocket on its own or it doesn't. If it doesn't, it's a liability.

Image digit business › Financial Literacy

What is an Asset? What is a Liability? - digit.business

In its simplest form, your balance sheet can be divided into two categories:
assets and liabilities.

Assets are the items your company owns that can provide future economic benefit.

Liabilities are what you owe other parties.

In short, assets put money in your pocket, and liabilities take money out!