What are assets and libilities?

Assets are an economic resource that is expected to provide benefits to a business. Like equipment used to manufacture a product for resale, or merchandise to be sold. An asset is something that the business owns or has a right to ownership like cash or accounts receivable(a customer owes a business money).

Liabilities are things that a business owes like mortgage payable or accounts payable. A bank loan is a type of liability where a business owes a bank money.