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Asset management involves the management of assets, such as investments or property. Liability management is the flip side of the coin: the management of debts, loans and mortgages for example. Most people and indeed most companies have a mixture of assets and liabilities to manage in order to maximise their returns or their growth of wealth. If liabilities are ill-attended, they can result in forced sell-offs of assets and where liabilities are far greater than the assets of course, individuals can be considered to be very highly leveraged, for example a first-time house buyer who may have a high mortgage. Liabilities in themselves are not necessarily a bad thing, but arguably more people have lost most through poor liability management than weak asset management.
Wiki User
∙ 16y ago
Wiki User
∙ 15y agoInvestment and asset are really close in meaning. Investment is when you put your money in stock, bond or other financial instruments. Whereas Asset is what you own generally reffered to land, proprietorship , factory, etc.
Wiki User
∙ 9y agoAssets are those items which are usable in business to generate revenue while liabilities are those amounts which arises due to business activities and are payable by company to it's owners or to third parties.
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The difference between assets and liabilities is?
assets are what the business owned and liabilities are what the business owe.
What is the difference between a company's assets and its liabilities or its net assets is?
Equity
Is Net worth is the difference between your assets and your liabilities?
Yes - it's the sum of your assets minus the sum of your liabilities.
What is the difference between vouching and verification of assets and liabilities?
What_is_the_difference_between_vouching_and_verification_of_assets_and_liabilities
What is the difference between outstanding assets and outstanding liabilities?
Outstanding assets are assets that are owed to an individual or business. Outstanding liabilities are debts that ill be incurred in the future.
The difference between assets and liabilities is called?
Net Worth or Equity
How does profit link with changes in assets and liabilities?
Profit is the difference between your assets and liabilities if you have $30,000.00 in assets and $20,000.00 in liabilities = you would have $10,000.00 in profit If you have 22,000.00 in Assets and $30,000.00= you would have $-8,000.00 in loss can be written as ($-8,000.00) usually in Red hope this helps
Differentiate between physical assets from physical liabilities?
differentiate between physical assets from physical liabilities
How do you calculate overdraft?
it is the difference between current assets and current liabilities which is the working capital gap
What is current liabilities to total assets ratio?
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
Is shareholders equity include in the total liability?
By definition, the answer is no.Total liabilities include current and long term liabilities and the sum is "Total Liabilities".Looking at the definition below, the difference between "total liabilities" and "total assets" results in the SH equity.Shareholders' Equity = Total Assets - Total Liabilities
What is the difference between total current assets and total current liabilities is?
the difference between total current assets and total liability is the working capital. It goes with a formula 'current asset -current liability =working capital '
