Assets vs. Liabilities; Definition/Characteristics (MATCH VERSION)

Anything you own that has value

Assets

A financial obligation or debt you owe to someone else

Liabilities

Tangible Assets

Physical items

Intangible assets

Non-physical assets such as patents, copyrights, and intellectual property

Financial assets

Contractual ownership claims and include cash, checking/savings accounts, stocks, bonds, and mutual funds

Liquid assets

Easily and quickly converted into cash without significant loss of value

Illiquid assets

Not easily converted into cash and may require time or effort to sell

Essentially dents or obligations you have to pay in the future

Liabilities

Can stem from borrowing money, purchasing goods or services on credit, or other financial commitments

Liabilties

Directly reduce your net worth

Liabilties

Can significantly influence your credit score

Liabilities