Assets are economic resources (things of value such as equipment, land, furniture, copyrights, goodwill, etc.) owned by a firm. Accountants list assets on the firm’s balance sheet in order of their liquidity, or the ease with which they can convert them to cash. The assets may be current (items converted into cash within 1 yr.), fixed (permanent such as land, buildings, and equipment) and intangible assets (copyrights, trademarks, goodwill).
Liabilities are what the business owes to others—its debts (current or long-term). Liabilities may be accounts payable (current expenses that are not yet paid), notes payable (things business promise to repay by a certain day), and bonds payable (money that the firm must repay back).
The revenue of a business monetary value of what a firm received for goods sold, services rendered, and other payments. The revenue depends on the production cost of goods sold that includes the operating expenses. When we subtract them by the revenue, we get the net profit or loss.