A liability is something a company or individual owes, a financial obligation to pay debt in the future. Simply, it’s the opposite of an asset. Assets are what you own, liabilities are what you owe.

For example: Your credit card debt, bank loans, unpaid bills, bonds issued by a company to raise funds etc.

Indexed Universal Life (IUL) policies sound appealing, “life insurance with market growth,”. But most people earn far less than promised. You have to go through high fees, insurance costs, and return caps (often 8–10%). Real returns average only 2–5% yearly. Where you can get 7–10% from low cost index funds. For example, investing $300/month for 20 years in an S&P 500 index, your fund could grow to over $150,000. In comparison, an IUL might give you under $90,000 after fees. It’s complex, expensive, and risky to maintain. For most people, term life + index funds is a far smarter, simpler choice.

Simply, current assets are the things a company owns that can be quickly turned into cash. usually within a year or during its normal business cycle

Most common examples: Cash or cash Equivalents, Accounts Receivable(Money customers owe for goods or services already delivered), Products ready to sell or materials waiting to be used, Payments made in advance for upcoming services like rent or insurance etc.

The 10/5/3 rule helps you understand what to expect from your investments. It is a quick guide to expected average returns from different types of assets:

• Stocks: ~10% per year
• Bonds: ~5% per year
• Cash/Savings: ~3% per year

The “3 M’s of money:

Making: Earning

Managing: Budgeting + Saving

Multiplying: Invest for passive income

Yes. Accounts receivable is an asset because it represents money your customers owe you. You expect to receive it soon, so it is listed as a current asset on the balance sheet.

Accumulated depreciation is not an asset. It is a contra-asset. That means it reduces the value of an asset like equipment over time.

Equipment is a long-term (fixed) asset. A current asset is an asset that can be converted to cash within one year. Equipment is used for several years. So it is classified as non-current.

Yes. Prepaid rent definitely is an asset because you paid in advance for future use of space. Think of it as “rent stored for later.” As each month passes, a part of it becomes an expense.

Retained earnings are equity, not assets. It represents profits the company kept instead of paying to owners. It shows how much the company has reinvested, not something it owns.

Unearned revenue is a liability, not an asset. It means you were paid in advance but haven’t delivered the service/product yet. You “owe” the customer value.

No. Service revenue is income, not an asset. It increases your earnings. It can lead to assets (like cash or accounts receivable), but is not an asset itself.

Executors look at bank statements, tax returns, mail, property deeds, online accounts, insurance papers, and talk to family members. They may also use asset search services or lawyers if needed.

A car is an asset because it has value and can be sold. However, it loses value over time (depreciation). A new car can lose up to 20% of its value in the first year.

Yes. Because you expect to receive the money within a year, often within 30–90 days.

Current assets are items that can be turned into cash within one year. Examples: cash, inventory, accounts receivable, prepaid expenses, short-term investments.

Yes, in many cases, MassHealth may consider a security deposit an asset. Because it is still your money. But rules can vary, so documents and proof of tenancy matter.

No. A 401(k) is not liquid because you can’t easily withdraw it without penalties before retirement age. It is a retirement asset.

When prices increase over time, your money becomes less valuable. This phenomenon is known as inflation. For example, if a coffee costs $3 today but $3.50 next year, that’s inflation at work. Your dollar didn’t change, but it’s worth less because things cost more.

Market sentiment refers to the optimistic or pessimistic feelings of investors. Bullish sentiment is when consumers purchase stocks because they are confident. They sell when they’re anxious, which lowers prices (bearish mood).

An ETF (Exchange-Traded Fund) is like a basket of investments you can buy in one go. Instead of picking individual stocks, you buy a share of the whole basket. For example, an S&P 500 ETF gives you a tiny piece of 500 different companies. It’s an easy way to diversify without buying hundreds of stocks separately.