In accounting, it is said that the asset is the set of goods, credits and rights that make up the equity of a person or company. Liabilities, on the other hand, represent the debts and obligations of that same person (individual or legal).
The net worth of a company is calculated by the difference between its assets and liabilities. This information is the foundation of the balance sheet of every enterprise.
| Active | Passive | |
|---|---|---|
| Concept | Assets, credits and rights of an economic entity. | Expenses and expenses. |
| types |
Current and non-current assets. Tangibles and intangibles. |
Current and non-current liabilities. |
| Examples | Goods, cash on hand, customer debts, bank deposits, real estate, land, machinery, patents, developed software, etc. | Salaries and expenses with employees, charges, taxes, installments of loans and financing, etc. |
In other words, within the balance sheet, assets represent the inflow of benefits (capital), while liabilities are the outflow of capital related to expenses incurred by the company.
Active
As seen earlier, the difference between assets and liabilities is related to the inflow (assets) or outflows (liabilities) of money. Assets will represent the sum of everything that adds value, which can be presented in different ways.
current assets
Current assets are the inflow of goods and rights that can be converted into cash in the short term.
Examples of current assets are:
- Cash on hand
- Bank deposits
- goods and stock
- customer debts
- Financial investments
non-current assets
Non-current assets are accounts that can only be converted into cash in the long term or over a period longer than the fiscal year of the current year. These are fixed or fixed assets and intangibles.
The following are understood as non-current assets:
- Property assets: real estate, machinery, automobiles, etc. (fixed assets)
- Patents, trademarks, customers, software and technology. (intangible assets)
- Investments, internal loans to team members, recoverable taxes and other assets that exceed the current fiscal year. (long-term assets)
Passive
Unlike assets, liabilities represent the sum of capital outflows. Passives have their own modes that vary according to how they are executed.
Non-required liabilities are: shareholders' equity, as well as the capital of a company's shareholders. Within the current liabilities, there are current liabilities and non-current liabilities.
current liabilities
Current liabilities represent expenses to be incurred within the fiscal year.
Examples of current liabilities are:
- Expenses with suppliers
- bills payable
- Titles
- Bank loan installments
- Salary
- Social charges
- Taxes
non-current liabilities
Non-current liabilities are cash outflows that exceed the term of the fiscal year.
Examples of non-current liabilities are:
- Financing and bank loans (exceeding the fiscal year)
- Provision for contingent expenses (labor claims, lawsuits, etc.)
- Expenses with subsidiary, controlled or affiliated companies
- Other expenses that exceed the fiscal year
See also the difference between:
- profit and billing
- Debit and credit
- Simple interest and compound interest
