A person’s debt is how much he or she owes to others.
Debt can be in the form of money, products or services owned to someone else.
If you borrow money, you were taking on new debt.
An asset is something that has value such as money, property, even a nice personality. Assets can be used to pay off debts.
Specialized knowledge or skills are also assets that can be used to get a job or earn money.
Real estate is property such as land, houses, and buildings.
Buying, selling, or renting a property is the business of the real estate.
Buying or selling real estate is a popular form of investment.
Inventory is a detailed list of items in one’s possession.
In business, one’s inventory is the supply of items that are ready for sale.
If a store runs out of things it sells, it needs to resupply its inventory.
An investment is the purchase of an asset with the hope that its value will increase.
A good investment will produce income, such as rental income.
If the value of an asset falls, the investment will lose money.
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The amount you owe on a loan is a debt.
If you own a house, it is an asset.
To take inventory means to list the items in your possession.
To take inventory means to make a detailed list of the items that you have.
When you sell an asset at a higher price than what you paid for it, you have made a profit.
When you use a credit card, you are taking on debt.
