What is An Asset? An asset represents a present economic resource of a company to which it has a right and an expectation that it will provide future benefit. Lets break that down further; assets are the “stuff” that the... Read more →
Liabilities are the financial obligations of a company arising from the ordinary course of business. Liabilities are incurred and settled over operating cycles through the transfer of economic benefits which include, but are not limited to, money, goods or services.... Read more →
The last variable in the accounting formula is owner’s equity. To review, Assets = Liabilities + Owner’s Equity. Equity is the section of the balance sheet that represents the capital received from investors in exchange for ownership in the business.... Read more →
