Q1) What is the Difference between Assets and Liabilities?

Ans: Assets are items that a company owns or has the right to use. These assets
carry a specific value and company can use them to pay a debt or any obligation.
Liabilities are an obligation for a business or an individual that they need to pay in
the future.
Difference

Assets Liabilities
(i) Items that a company owns or (i) Obligation that a business needs
has right to use. to pay in future.
(ii) They help in generating revenue (ii) These are the financial
for a company. obligations that a company
(iii) Two types: Fixed assets, Current needs to pay in future.
Assets. (iii) Two types: Current liabilities and
(iv) Examples: Building, Cash, non current liabilities.
Machinel, Account Receivable (iv) Example: Account payable,
Loans etc.
etc.
(v) Liabilties are always Non-
(v) Fixed assets are subject to
depreciable
depreciation. (vi) Assets results into outflow of
(vi) Assets results into inflow of cash cash and decrease cash balance.
and increase cash balance.

Q2) What do you understand by the term Expenses and Revenue?

Ans:
Revenue:
Business revenue can be defined as the amount of money that you bring at any time
through sales or any other company. The company's revenue will fluctuate significantly at
any given time depending on the needs of its product. For this reason, it is wise to choose an
extension of time for which you will measure income. Companies often prepare annual
income reports that measure the amount of their annual income.
Expenses:
Company expenses can be defined as potential costs, such as infrastructure or payments.
Expenses are also subject to change at any time but are subject to direct control of the
company. It is possible to reduce expenses by cutting in one or more areas. Most businesses
try to combine their expenses with revenues so that the cost stays in the range and does not
exceed the income.