If you live in a million dollar home or next to neighbor that does, would that make you (or them) a millionaire? Accounting would show the financial statements of the property owner as assets of one million dollars but would also show any of their liabilities. If there are any liabilities they would be subtracted to from the assets to determine millionaire status. Accounting involves the recording of all facts and ignores non facts. Things aren’t always as they seem on the surface!
