Equity is your company's value after deducting your liabilities from your assets. Learn more about how business equity works.

The accounting equation, expressed as Assets = Liabilities + Equity, serves as the foundation ... a business owes to outside parties. Examples include loans, accounts payable or other debts.

Common stock represents ownership in a company, not a direct asset or liability. Issuing common stock raises funds for a company without needing repayment like a loan. Common stock equity ...

Examples of long-term assets include the following ... is the difference between total assets and total liabilities. The amount of equity the owner has in the business is an important yardstick ...

Examples of tangible assets include land ... and must balance in the simple equations assets minus liabilities equals shareholders’ equity which governs the balance sheet.

In our above example, Joe's Holiday ... at in a vacuum -- is debt. Because liabilities such as long-term debt are subtracted from assets when shareholders' equity is computed, a company's debt ...