The amount I hold in my checking account is:
a liability to both me and my bank. an asset to both me and my bank. a liability to me but an asset to my bank. an asset to me but a liability to my bank.
In considering how balance sheets are linked, we need to remember that any:
asset on one balance sheet will also be an asset on another balance sheet. asset on one balance sheet will also be a liability on another balance sheet. liability on one balance sheet will also be an asset on another balance sheet. liability on one balance sheet will also be a liability on another balance sheet.
