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now the definition may sound good to a trained accountant; but for the average person it makes no sense。 But we adults are often too proud to admit that something does not make sense。

As young boys; rich dad said; 〃What defines an asset is not words but numbers。 And if you cannot read the numbers; you cannot tell an asset from a hole in the ground。〃

〃In accounting;〃 rich dad would say; 〃it's not the numbers; but what the numbers are telling you。 It's just like words。 It's not the words; but the story the words are telling you。

Many people read; but do not understand much。 It's called reading prehension。 And we all have different abilities when it es to reading prehension。 For example; I recently bought a new VCR。 It came with an instruction book that explained how to program the VCR。 All I wanted to do was record my favorite TV show on Friday night。 I nearly went crazy trying to read the manual。 Nothing in my world is more plex than learning how to program my VCR。 I could read the words; but I understood nothing。 I get an 〃A〃 for recognizing the words。 I get an 〃F〃 for prehension。 And so it is with financial statements for most people。

〃If you want to be rich; you've got to read and understand numbers。〃 If I heard that once; I heard it a thousand times from my rich dad。 And I also heard; 〃The rich acquire assets and the poor and middle class acquire liabilities。〃

Here is how to tell the difference between an asset and a liability。 Most accou

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