When we have to receive something from any other person it becomes an asset for the receiving person. Liability will be one when something is due to be paid to an outsider. Expense is the outflow of economic resources to earn the specified revenue. Capital is the sum provided by the owner for investment purposes in a business.

Asset

Assets are resources owned by a business that have monetary value and are expected to provide future benefits. Money owed from an outsider is an asset because it represents a future benefit that the business is entitled to receive. This asset is also known as accounts receivable.

Explanation:

When a business sells goods or provides services to a customer on credit, the customer owes money to the business. This amount is recorded as accounts receivable in the books of the business. Accounts receivable is an asset because it represents the amount of money that the business is entitled to receive in the future from the customer.

Example:

Suppose a business sells goods worth $10,000 to a customer on credit. The customer agrees to pay the amount in 30 days. The business records this transaction as follows:

Debit Accounts Receivable $10,000
Credit Sales $10,000

In this transaction, the business recognizes $10,000 in sales revenue but does not receive the cash immediately. Instead, the customer owes the business $10,000, which is recorded as accounts receivable. After 30 days, when the customer pays the amount, the business reduces its accounts receivable and increases its cash balance.

Conclusion:

Money owed from an outsider is an asset because it represents a future benefit that the business is entitled to receive. This asset is recorded as accounts receivable in the books of the business.

It is an asset because when something is to be receivable from outside it's called asset .
liability is sth which is due and payable to outsider like we have opt a loan from bank so from the due period we have to make repayment to bank ..