Every asset is someone else's liability, but not every liability is someone else's asset.

Question

Quizplus · Accepted Answer

Assets and liabilities are accounting concepts where an asset for one entity is indeed often a liability for another (e.g., a bank loan is an asset for the bank and a liability for the borrower), but the reverse is also true: every liability must be an asset for another entity, reflecting the principle of double-entry bookkeeping.

Every Asset Is Someone Else's Liability, but Not Every Liability