For example, you could specialize in packing supplies for cosmetic or bath and body companies, ... whereas the second lets you sell the supplies in bulk to retailers, reports Asset Panda.

Take a look at what the accounting equation uses, and then consider how the specific examples of assets and liabilities fit in. Understand the Accounting Equation.

Asset-based lending is the business of loaning money with an agreement that is secured by collateral that can be seized if the loan is unpaid.

Short-term assets refer to those that are held for a short period of time or assets expected to be converted into cash in the next year.