Frequently Asked Questions(FAQ)

Is labor considered an asset?

While it is common to say “My employees are my greatest asset,” labor is technically not considered an asset. While it does bring economic benefit, companies do not have control over employees - they can leave at any point in time.

What’s the difference between business assets and liabilities?

Assets are the resources your company owns that can provide economic benefit. Liabilities are what your company owes to other parties.

How can a business tell if something is an asset?

For something to be considered an asset, it must meet the three criteria: be owned and controlled by the company, bring economic value, and be considered a resource.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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More About Glossary of Common Financial Terms

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