please respond to this discussion in 3 to 5 sentences. thank

Assets and liabilities are established on the balance sheet regarding accounting. When you subtract assets and liabilities, this gives you the current equity. An asset is something that is possessed by you. An asset is an item that will be beneficial financially for you. Some examples of assets are buildings and property. Another example of an asset is a company billing you for the utilization of their product. The ultimate examples of assets are cash and inventory these are tangible items and cash can be used to pay for your liabilities immediately. Liabilities are items that you still owe money towards. In other words, liability is a debt. A Liability could be things like a mortgage or a car payment. A credit card payment is considered a liability because even though these items are tangible goods that one purchases with that card are in your possession, you are still paying for them. The car you will one day own and will move to the asset category. Until you pay for the car in full it is a liability