Differences Between Assets and Liabilities Sometimes, assets and liabilities can be closely related. For example, if you own a house, that house would be considered an asset.

Discover what goodwill in accounting means, how to calculate it, and its role during acquisitions. Learn about goodwill ...

Business firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and ...

Say it has $3,000 in deferred tax assets and a tax liability of $10,000. For the sake of example, imagine that the company is being taxed at a rate of 30%, meaning it owes $3,000 in taxes.

It equals the difference between assets and liabilities. In order for a company's balance sheet to be "balanced", its total assets must equal its total liabilities plus equity: ...

As an accounting measure, shareholders’ equity (also referred to as stockholders’ equity) is the difference between a company’s assets and liabilities. It is also called book value of equity.

Shareholders' Equity = Assets - Liabilities For example, if a company's total book value of assets amount to $1,000,000 and total liabilities are $300,000 the shareholders' equity would be $700,000.