BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Assets are everything your business owns. Liabilities and equity are what your business owes to third parties and owners. To balance your books, the golden rule in accounting is that assets equal liabilities plus equity.

Detailed explanation-2: -Difference Between Equity and Assets. The primary difference between Equity and Assets is that equity is anything invested in the company by its owner. In contrast, the asset is anything that the company owns to provide economic benefits in the future.

Detailed explanation-3: -The three elements of the accounting equation are assets, liabilities, and shareholders’ equity. The formula is straightforward: A company’s total assets are equal to its liabilities plus its shareholders’ equity.

Detailed explanation-4: -In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out!