Claims and assets make up the backbone of the accounting systems. The famed accounting equation, seen in the budget sheet, is actually a rendition of total claims and total assets. Together, these two ...

Most people often confuse net worth with income, but understanding the distinction is crucial for financial health. Recent analyses reveal that net worth, which includes assets and debts, varies ...

When it comes to a company’s taxes, there are two important categories to understand: assets and liabilities. Tax liability is anything that a person or company owes taxes on, such as income or ...

In accounting terms, a liability is an amount that you owe a creditor. Liabilities generally fall into two categories -- current and long-term. Current liabilities include debts you owe that you ...

In financial and investment terms, net worth is defined as a person’s or entity’s total assets minus their liabilities. Both should be headers on your balance sheet. What is an asset — and are you ...

Assets and expenses are two important accounting concepts elemental to understanding your company’s performance. While both assets and expenses have a debit balance on your business’s financial ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...