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Most of them were confused between Asset and Liabilities. Asset is what you own and Liabilities is what you owe.
Let me explain you very clearly that… for example, lets say you are starting a business. But you do not have enough money to run the business so you get some loan from banks or some other entities called Liabilities .
So with that money you bought some machinery to run your business called Assets.
In other words,
 Asset means which generate income or what you own and Liabilities is which you want to pay them back or what you owe.
Hope you understood!

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