Assets refer to all the resources that an organization owns or controls, which are expected to provide future economic benefits. Examples of assets include cash, accounts receivable, inventory, property, and equipment.
Liabilities, on the other hand, are the obligations that an organization owes to others, which are expected to be settled in the future by transferring resources or providing services. Examples of liabilities include accounts payable, loans payable, and deferred revenue.
Owner's equity represents the residual interest in the assets of an organization after deducting all its liabilities. It represents the owner's investment in the organization, including contributions in the form of cash, property, or services, and any retained earnings or profits generated by the organization since its inception. Owner's equity can also be called shareholder's equity or simply equity.
Assets are the total of your cash, the items that you have purchased, and any money that your customers owe you. Liabilities are the total amount of money that you owe to creditors. Owner's equity, net worth, or capital is the total value of assets that you own minus your total liabilities.
Answers & Comments
Answer:
Assets refer to all the resources that an organization owns or controls, which are expected to provide future economic benefits. Examples of assets include cash, accounts receivable, inventory, property, and equipment.
Liabilities, on the other hand, are the obligations that an organization owes to others, which are expected to be settled in the future by transferring resources or providing services. Examples of liabilities include accounts payable, loans payable, and deferred revenue.
Owner's equity represents the residual interest in the assets of an organization after deducting all its liabilities. It represents the owner's investment in the organization, including contributions in the form of cash, property, or services, and any retained earnings or profits generated by the organization since its inception. Owner's equity can also be called shareholder's equity or simply equity.
Answer:
Assets are the total of your cash, the items that you have purchased, and any money that your customers owe you. Liabilities are the total amount of money that you owe to creditors. Owner's equity, net worth, or capital is the total value of assets that you own minus your total liabilities.