Question: 1. Briefly explain the difference between an asset and a liability. 2. Businesses have many different types of specific assets and liabilities. Think about any

1. Briefly explain the difference between an asset and a liability.

2. Businesses have many different types of specific assets and liabilities. Think about any type of business with which you are familiar (e.g., a retailer, restaurant, law office, etc.), and name one specific asset, and one specific liability that this type of business might have. (Note: There are a number of potential responses to this questionthe major goal is for you to correctly identify a specific example of an asset and a specific example of a liability).

3. Briefly explain why a balance sheet balances. In other words, why do Assets equal Liabilities on a balance sheet?

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