What is the difference between liabilities and expenses?

Liabilities are listed on a company's balance sheet and expenses are listed on a company's income statement. Expenses are the costs of a company's operation. Liabilities are the obligations and debts that a company owes. Expenses can be paid immediately with cash or the payment could be delayed which would create a liability.

What are assets and liabilities?

Assets and liabilities are two of the primary items found on corporate financial statements and balance sheets. Assets and liabilities are two of the primary items found on corporate financial statements and balance sheets.

What is the difference between liability and asset?

To understand how the two differ, you have to know the liability vs. asset meaning: Liabilities: Existing debts a business owes to another business, vendor, employee, organization, lender, or government agency. Liabilities can help owners finance their companies (e.g., loans). Assets: Items or resources of value that the business owns.