Generally speaking, assets are something a person or company owns that can provide future financial benefits. Good examples of financial assets include cash, inventory, accounts receivable and equipment, to name a few.
Liabilities, on the other hand, consist of money that must be paid or services that must be performed. A solid company will have more assets than liabilities, which means it can satisfy its obligations.
A bank deposit can be a liability or asset, depending on the type. Find out what constitutes banks assets and liabilities and increase your financial savvy by learning the following basic banking terms.
