name two different types of assets and liabilities and give an example for each
Assets:
1. Cash - This includes physical currency, bank deposits, and other liquid assets that can be easily converted into cash. For example, a company's checking account balance would be considered a cash asset.
2. Property, Plant, and Equipment (PP&E) - This refers to tangible assets such as buildings, machinery, and vehicles that a company uses to operate its business. For example, a manufacturing company's factory building would be considered a PP&E asset.
Liabilities:
1. Accounts Payable - This represents money owed by a company to its suppliers for purchases made on credit. For example, if a retailer buys inventory from a supplier on credit terms, the amount owed to the supplier would be classified as an accounts payable liability.
2. Long-Term Debt - This refers to loans or bonds that will not be fully repaid within the next 12 months. For example, if a company takes out a mortgage to finance the purchase of a new office building, the mortgage debt would be classified as a long-term debt liability.