Question

Explain in a paragraph what the difference is between assets, liabilities, net worth, income and expenses.

Answer 1

assets - Things that are resources owned by a company and which have future economic value that can be measured and can be expressed in dollars.

Liabilities-Liabilities are legally binding obligations that are payable to another person or entity. Settlement of a liability can be accomplished through the transfer of money, goods, or services.

Net worth - Net worth is the difference between the asset and the liability of an individual or a company.

Income - Net worth is the difference between the asset and the liability of an individual or a company.

Expenses - An expense is the cost of an asset used by a company in its operations to produce revenues. In other words, an expense is the use of assets to create sales.