Liability's opposite on a balance sheet NYT

The crossword clue "Liability's opposite on a balance sheet" with the answer "ASSET" refers to asset, a term used in accounting and finance to describe anything of value or a resource owned by an individual or company that is expected to provide future economic benefits. In contrast to liabilities, which represent debts or obligations that a company owes, assets are the positive values on a balance sheet. These can include physical property like real estate or equipment, financial resources like cash or investments, and intangible items like patents or trademarks.

The relationship between assets and liabilities is crucial in assessing a company's financial health, with the net worth or equity being the difference between the two. Thus, asset is the opposite of liability on a balance sheet, reflecting what is owned versus what is owed.

The crossword clue "Liability's opposite on a balance sheet" with the answer "EQUITY" refers to equity, a financial term used to describe the value of ownership in an asset or business, after subtracting any liabilities. In accounting, equity represents the residual interest in the assets of an entity after deducting its liabilities. It is essentially what the owners of a company or business would theoretically receive if all debts were paid off.

On a balance sheet, equity is calculated by subtracting total liabilities from total assets, and it includes items like shareholder capital, retained earnings, and stock. In contrast to liabilities, which are obligations the company owes, equity reflects the ownership value and financial health of the business, making it the opposite of liabilities in terms of financial position.

The crossword clue "Liability's opposite on a balance sheet" with the answer "CAPITAL" refers to capital, a term in accounting and finance that represents the financial resources or funds invested in a business by its owners or shareholders.

On a balance sheet, capital is often shown as part of the equity section, as it reflects the owner's financial stake in the company after liabilities are deducted. Capital can include initial investments, retained earnings, and funds raised through issuing stock. It’s considered the opposite of liabilities, as liabilities represent what the company owes, whereas capital represents what the company owns through its financial resources. Together, capital and liabilities help a company finance its operations, and capital demonstrates the company’s net worth or financial stability.

The crossword clue "Liability's opposite on a balance sheet" with the answer "REVENUE" refers to revenue, which is the income a business earns from its normal operations, such as sales of goods or services. While revenue is not directly an "opposite" of liability in an accounting sense, as they appear in different financial statements, they serve contrasting roles within a company’s financials.

Revenue appears on the income statement, reflecting the inflow of funds due to business activities. In contrast, liabilities appear on the balance sheet, showing debts or obligations the company owes to others. Revenue represents positive financial growth, as it contributes to a company’s profitability, while liabilities represent amounts owed. The connection between the two lies in their impact on financial health: higher revenue can help reduce liabilities by enabling a company to pay down its debts.