Assets and Liabilities

Assets - these are tangible or non-tangible things that would generate income. In simple terms just remember the word "income".

Liabilities - these are tangible or non-tangible tings that would generate expense. In simple term just remember the word "expense".


Now lets have an example, having assets and liabilities defined in which category would you place your cellphone?


Cellphone
(this only goes for the average Filipino individual)
- From the day the cell phone was purchased money went out of the pocket
- After that , we would keep on "loading" it.
- Therefore , the cell phone is a liability for an average Filipino


Now that we know the difference, let's now turn your phone into an asset that would in turn generate more income for you.