Accounting for IGCSE & O level - Final Statements (Section 13 - No. 31)

What is the difference between an asset and a liability?
Assets represent what a company owes, while liabilities represent what a company owns.
Assets represent what a company owns, while liabilities represent what a company owes.
There is no difference, they are the same thing.
Both assets and liabilities represent what the owners invested.

Explanation

An asset is something a company owns, and a liability is something a company owes.

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