What is considered an asset or liability?
Business assets may include tangibles, such as the inventory of the business, and intangibles, such as goodwill. Businesses may also own assets that are intended to accommodate the business such as furniture, vehicles, real property and factory equipment. These assets are not intended for sale and are referred to as fixed assets or long-term assets. Business liabilities can include debts to creditors as well as accrued payroll and accrued payroll taxes, debts that the business owes to employees for past work and money owed to the government for taxes on the employees’ wages. Businesses may also have long-term liabilities, such as the debt repayment for a mortgage on real property used for the business.
