Knowing the distinction between assets vs. liabilities is part of the essential information in reading a financial statement. This is because assets are items that belong to the business, while liabilities are items that the business owes. Thus, in answering questions on what are assets in accounting, you will need to know that this includes the money, inventory, property, equipment, and the future value of your accounts receivable. What is liabilities in accounting, on the other hand, includes loans or financial responsibilities owed by your company.