Assets
Assets refer to the properties used in the operation or investment activities of a business. It is all the valued stuff of a business. The valued stuff includes tangible and intangible stuff. Tangible stuff are things that you can see and touch it physically such as vehicles, equipment, buildings, etc. Intangible stuff are things like sales and invoices that represent loans to customer that will be paid later for services or products.

Liabilities
Liabilities are claims of creditors. It is the amount that a business owes to others, usually the suppliers. Liabilities can include accounts payable, taxes, wages, accrued expenses and deferred revenues.

Owner's Equity (Capital)
Capital is the money, property and other valuables which represent the wealth of the business, it is also called proprietorship and net worth.

Type of Assets

• Cash - Monetary items that are available to meet current obligations of the business. It includes bank deposits, currency & coins, checks, money orders, and traveler's checks.
• Accounts Receivable - Business claims against the property of a customer arising from the sale of goods or services on account.
• Notes Receivable - Formal written promises given by customers or others to pay definite sums of money to the business at specified times.
• Inventory - Expenditure for items held for resale in the normal course of a business's operations.
• Office Supplies - Expenditure for maintaining a supply of on hand supplies such as printer, papers, pens, pencils, etc.
• Land - Expenditure for parcels of the earth. It includes building sites, yards and parking area.
• Building - Expenditure for structures erected on land and used for the conduct of business.
• Equipment - Expenditure for physical goods used in business, such as machinery or furniture.
  
• Equipment is used in a business during the production of income.
• Furniture includes items needed in a business office such as tables, desks, chairs and cabinets.

Type of Liabilities

• Accounts Payable - Creditor's claims against the business's property arising from the business's purchase of goods or services on account.
• Notes Payable - Formal written promises to pay definite sums of money owed at specified times.
• Mortgage Payable - Notes payable which are secured by a lien on land, buildings, equipment, or other property of the company.

Type of Revenue (Income)

• Sale of Products - Amount earned from the sale of merchandise.
• Sale of Services - Amount earned from performing services.
• Rental Income - Amount earned from renting properties.
• Interest Income - Amount earned from investments.

*** Click here to learn other useful Accounting terms.