BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Your net worth is calculated by subtracting your liabilities from your assets. Essentially, your assets are everything you own, and your liabilities are everything you owe.

Detailed explanation-2: -Assets are items possessed by a business that will provide it benefits in future. Liabilities are items that are obligations for a business. Impact of Depreciation.

Detailed explanation-3: -Assets are what a business owns and liabilities are what a business owes. Both are listed on a company’s balance sheet, a financial statement that shows a company’s financial health. Assets minus liabilities equals equity, or an owner’s net worth.

Detailed explanation-4: -What are liabilities? Liabilities include everything your business owes, presently and in the future. These include loans, legal debts or other obligations that arise in the course of business operations. The loans are often used to finance your operations, or pay for expansions or new equipment.

Detailed explanation-5: -Liabilities are the legal debts a company owes to third-party creditors. They can include accounts payable, notes payable and bank debt. All businesses must take on liabilities in order to operate and grow. A proper balance of liabilities and equity provides a stable foundation for a company.