BANKING AFFAIRS

Detailed explanation-1: -Everything the company owns is classified as an asset and all amounts the company owes for future obligations are recorded as liabilities. On the balance sheet, total assets minus total liabilities equals equity.

Detailed explanation-2: -Assets minus Liabilities equals Fund Balance (also called Net Assets). An asset is something ownedeither cash or something that could be sold or collected to turn into cash, like equipment or a receivable. A liability is something owedsuch as a payment to a vendor (an account payable) or a mortgage on a building.

Detailed explanation-3: -Equity is equal to total assets minus its total liabilities. These figures can all be found on a company’s balance sheet for a company. For a homeowner, equity would be the value of the home less any outstanding mortgage debt or liens.

Detailed explanation-4: -The balance sheet provides the values needed in the equity equation: Total Equity = Total Assets-Total Liabilities. Where: Total assets are all that a business or a company owns.

Detailed explanation-5: -Equity is a common financial term used in business operations, investing and more. All assets minus total liabilities equals total equity. This balance can be used to determine the profitability of a company or to determine an investor’s stake of ownership.