Why is it important for companies to keep a good record of their assets and liabilities?

[alexx]

It is essential to be able to manage the company's assets and liabilities effectively so that there is a balance within the business. Knowing what an asset means in the context of accounting will help the business owner appreciate the worth of the resources that they have and the strength that they have in conducting their business. At the same time, knowing the concept of money liabilities in accounting will go a long way in determining the payment responsibilities.