What is the difference between an asset and a liability?

@fredrick 

An asset is something of value owned or controlled by an individual, business, or organization. It can be tangible, such as properties, vehicles, or cash, or intangible, such as patents, trademarks, or copyrights. Assets are expected to provide future economic benefits to the owner.

On the other hand, a liability is an obligation or debt owed by an individual, business, or organization. It represents a claim on assets and arises from past or current transactions or events. Liabilities can include loans, mortgages, accounts payable, or any other type of debt.

The key difference between assets and liabilities lies in their nature and impact on financial position. Assets are resources that contribute to an entity's value and financial health, while liabilities are obligations that have to be fulfilled using the entity's assets or resources. In simple terms, assets represent what an entity owns, whereas liabilities represent what an entity owes.