eli5 what’s the difference between an asset and a liability ?

214 views

Couldn’t get it while reading Rich dad Poor dad book

In: 1

5 Answers

Anonymous 0 Comments

An asset is something with value that you own.

A liability is something you own that represents negative value.

You own a house that is worth money. It is an asset.

You borrowed money to buy the house. That loan is a liability.

You are viewing 1 out of 5 answers, click here to view all answers.