Is the Telephone Considered an et or a Liability?

A telephone is an et and a liability. It has value, it can be resold, and therefore it is an et. However, it incurs costs and is a liabilty. The expenses would be on one side of the balance sheet, the equipment would be on the other. Cars are also ets as well as liabilities. When you buy a car for �10,000 you don't just lose �10,000 into the ether. You still have that value except it's retained in the vehicle rather than in paper money. The costs of the vehicle are liabilities but you still have value in the vehicle which you could turn back into paper money (minus depreciation of course).