What is EQUITY?

Опубликовано: 02 Октябрь 2023
на канале: Accounting Stuff

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What is Equity? Equity is the stuff that a business owes to its owners. If we rearrange the Accounting Equation, we can see that Equity is equal to Assets minus Liabilities. Or 'Net Assets'. So Equity is the owner's claim on the Net Assets of a business.

Equity sits on one side of the Balance Sheet, next to Liabilities. It's made up of two things:

▪ Capital Contributions
▪ Retained Earnings

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