Which item is typically not considered an asset?

In the context of finance and personal wealth management, an asset is defined as a resource owned by an individual or entity that has economic value and can provide future benefits. Cash, stocks, and real estate property are all types of assets because they can be owned and have a tangible or marketable value that can generate income or capital appreciation.

Mortgage debt, however, is classified as a liability rather than an asset. Liabilities represent obligations or debts that must be paid to others, which diminish the net worth of an individual or entity. In this case, mortgage debt indicates money owed to a lender for a loan taken out to purchase real estate. While the property itself is an asset, the debt incurred to finance the purchase is not; rather, it is a financial responsibility that must be managed and repaid. Understanding these distinctions is crucial for evaluating one's financial position accurately.