1. Assets refer to resources formed by past transactions or events of an enterprise, which are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise. Resources that cannot bring economic benefits cannot be used as assets, but are the rights of enterprises. Assets can be divided into current assets, long-term investments, fixed assets, intangible assets and other assets according to liquidity.

Among them, current assets refer to assets that can be realized or consumed within 1 year or more than 1 year, including cash, bank deposits, short-term investments, receivables and prepayments, prepaid expenses, inventory, etc.

2. Liabilities refer to the current obligations formed by past transactions or events of the enterprise, which are expected to lead to the outflow of economic benefits from the enterprise. Debt is essentially an economic debt that an enterprise must repay after a certain period of time. Its repayment period or specific amount has been stipulated and restricted by the contract and articles of association when it occurs or is established, and it is an obligation that an enterprise must perform.

Extended data:

If a project is not expected to bring economic benefits to the enterprise, it cannot be recognized as an asset of the enterprise. Projects that have been recognized as assets in the early stage can no longer be recognized as assets of the enterprise if they can no longer bring economic benefits to the enterprise.

The item of "long-term loan" shall be calculated and filled out according to the balance of the general ledger account of "long-term loan", minus the amount of long-term loan that will expire within one year from the balance sheet date and the enterprise cannot independently extend the repayment obligation.

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