Investment is asset or liabilities

Investment is considered to be an asset, because it will generate more income in the future. For example, if a person invests in a company, they will have more money to invest in other companies.

The investment in a company is considered to be a liability because the company may not generate enough revenue for the investor.

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An argument can be made that investment is an asset. The idea is that if investments are well-managed, the proceeds from these investments will provide a company with additional funds to operate. This is like the interest on a bank account. If this happens, investment will be an asset as opposed to a liability of the company.

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Investment is not always an asset. It can be considered as a liability if it generates a loss or generates negative return over the years. This can happen if the asset cannot generate a positive cash flow or it is not generating enough revenues to cover the costs of operating the asset.

An investment will be considered as an asset if it generates potential cash flows in the future that are worth more than its costs of investment. If the investment has a high likelihood of generating positive cash flow then there will be less chance of it being treated as liabilities.

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