Asset vs. Liability

"AN ASSET PUTS MONEY IN MY POCKET. A LIABILITY TAKES MONEY OUT OF MY POCKET." - ROBERT KIYOSAKI, RICH DAD POOR DAD AN ASSET CAN CREATE CASH FLOW, CUT EXPENSES, OR BOOST SALES TODAY OR IN THE FUTURE. YOU POSSESS OR OWN ASSETS. IT PROTECTS MONEY AND OTHER VALUABLES OWNED BY AN INDIVIDUAL OR A BUSINESS. ASSETS CAN BE DIVIDED INTO TWO CATEGORIES: TANGIBLE AND INTANGIBLE. A LIABILITY IS A DEBT, USUALLY MONETARY. LIABILITIES ARE THINGS THAT YOU OWE OR HAVE BORROWED AND NEED TO PAY BACK. THE STATE OF BEING LEGALLY RESPONSIBLE FOR SOMETHING. YOU CAN COMPARE LIABILITIES TO ASSETS.