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An asset is a resource that entrepreneurs can use to create economic value. Examples of assets are land, cars, and buildings.
A liability is an exact opposite of an asset because it does not create economic value, even if you own it. Examples of liabilities are debts and other financial obligations.
An expense refers to the cost of running a business. Common expenses include salaries, utilities, and rent.
Your business’ cash flow is the movement of money within your business. It includes expenses and income.