I always seem to muddle these up. Can someone please give me a good definition of each, along with examples that come in each category? Thanks.

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Originally Posted by niggz

I always seem to muddle these up. Can someone please give me a good definition of each, along with examples that come in each category? Thanks.

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aseets add value, liabilities take it away, revenue is cash flow in, expenses is cash flow out

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Originally Posted by paraclete

aseets add value, liabilities take it away, revenue is cash flow in, expenses is cash flow out

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thanks, but what do you mean by 'add value'?

well they are something that will contribute value to the business over time, i.e. plant and machinery are a means of production, buildings are a base for business operations, cash is essential to fund operations, vehicles facilitate transport. Net Assets = Equity