Going to the grocery store and purchasing a few household items is the simplest example of a purchasing. If the quantity of items to be purchased gets larger you might even think of listing them down as to avoid any important item being missed out.
Both assets and liabilities are the part and parcel of a company. Assets are the objects or elements which are bought for the benefit of the company. Almost all sorts of assets have to experience depreciation with the passage of time. Depreciation is the reduction