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What is an asset?
An asset is a resource that entrepreneurs can use to create economic value. Examples of assets are land, cars, and buildings.
What is a liability?
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.
What is the expense?
An expense refers to the cost of running a business. Common expenses include salaries, utilities, and rent.
What is the cash flow?
Your business’ cash flow is the movement of money within your business. It includes expenses and income.