Assets are those owned by a certain company that can provide future benefit to the company (ex: Cash on hand, cash in bank, accounts receivable, plant property and equipment (PPE), etc). Liabilities, on the other hand, are obligations (notes payable, accounts payable, salary, interest payable, etc)

I majored in Finance when I was in college :) hope this helps.

Assets and Liabilities are part of a basic accounting equation: Assets = Liabilities + Stockholder's Equity. In other words, Assets are things of value you own (such as cash, a house, etc.). Liabilities are things you owe to others (such as money you borrowed from a bank), and Stockholder's Equity is what balances the equation (usually in the form of revenues or expenses).

An asset is something good or valuable that you have. A liability is a problem or a negative thing that you have. People try to have more assets than liabilities. (more good things than bad things)