ASSETS, LIABILITIES, OWNER’S EQUITY
ASSETS, LIABILITIES, OWNER’S EQUITY
DEFINATION:
ASSETS:
Assets are the resource of company.
In other words:
Any thing own by financial company or organization is called assets. It may be in the form of cash, government securities, bonds and bills of exchange.
LIABILITIES:
Any thing owes the financial company from people or other persons outside the industry are called liabilities.
OWNER’S EQUITY:
Owner’s Equity is also called financial company capital. It may be in the form of cash or in debt.
In other words:
INTRODUCTION:
Assets, liabilities and owner’s equity are the major part of financial company balance sheet. The balance sheet provides the financial institution condition. The equation shows the condition of the company,
Assets = Liabilities + Owner’s Equity
Assets are recorded in the balance sheet in dollar or in rupees.
Types of Assets:
There are some kinds of assets which are as under,
- Tangible Assets
- Intangible Assets
TANGIBLE ASSETS:
Tangible Assets are those assets which can touch. It includes fixed assets.
INTANGIBLE ASSETS:
Intangible assets are those assets which we can’t touch. It includes patents, Rights, copy rights and goodwill of the company.
Types of Liabilities:
There are some kinds of liabilities which are as under,
- Current Liabilities
- Long Term Liabilities
CURRENT LIABILITIES:
Current liabilities are those liabilities which paid with in the year. It includes bill payables, salaries of workers, and short term loans.
LONG TERM LIABILITIES:
Long term liabilities are those liabilities which paid after the one year like mortgage.
Tags: Assets of Financial Institution, capital of financial institution, Resource of Company, Types of assets, types of liabilities