Assets can include cash, contracts, receivables, inventories, and physical property and equipment.
Carefully examine the condition of the assets, as current market values may differ from the initial cost of items. Things like old receivables may become your bad debts and outdated equipment can be costly to replace. Liabilities include mortgages, outstanding loans or liens, unpaid taxes and any other obligations, such as accounts payable to suppliers. Review any accrued liabilities with extreme caution. Legal advice is worth the cost, especially if you agree to take on some of the liabilities.