Frequently Asked Questions(FAQ)

Is profit an asset or liability?

Profits are listed on the income statement, - they are neither an asset nor a liability. However, the investments that generate profit or income are usually listed under “Assets” on the balance sheet.

What is the difference between liability and debt?

The term “debt” describes financial obligations associated with unpaid loans. “Liability” is a broader term that encompasses debt and other types of financial obligations.

What does IFRS stand for?

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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