What is EQUITY?

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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#Shorts #accountingstuff

[preethih]

Hey I am from India. Trying to understand accounting terms before i invest in quality stocks. Never i have understood equity properly before watching your videos. You are doing a great job 👏. Expecting to learn more from your channel. Glad i found it 🎉

[arvindshinde]

Now explain every single term in accounting and finance its too tough for me 😅

[masadi]

I recently got interested in learning finance and accounting concepts and terms, and this channel has really helped me a lot, especially with its good visualization. Thanks mate, keep posting ❤🔥👌

[devshukla.]

Accrued expenses also known as Outstanding expenses or Due

[shrutidash]

What is the account used for capital contributions?

[bee-air]

Could you please do a video explaining basis periods I really can't get my head around it 🤦‍♀️

[EllisBonifacio]

Hi, i just have a concern and maybe an expert like you might enlighten me iam currently an accounting student and iam wondering if it's fine to use capital letters while iam making my journal entries as well as my financial statements? Thanks and more power to your channel