There are three concrete parts to the Balance sheet. The parts comprise of assets, liabilities, and Equity. These three parts are also based on the accounting equation is: Shareholder’s equity= Assets – Liabilities In simple words, the primary difference is that equity is the investors’ resources in the company and liabilities are the outsiders’ resources …
There are three concrete parts to the Balance sheet. The parts comprise of assets, liabilities, and Equity. These three parts are also based on the accounting equation is: Shareholder’s equity= Assets – Liabilities In simple words, the primary difference is that equity is the investors’ resources in the company, and assets are that of the …
In the world of finance, equity refers to any money companies generate through their shareholders or businesses through their owners. Equity is a type of finance that companies use when starting up and down the line when they need funds. However, there’s also another word that people often use called capital. While these are similar …
Equity Vs. Capital: 6 Differences You Should Know Read More »
When it comes to the sources of financing, companies or businesses have two primary options. These are equity and debt. Both of these types of finance have their advantages or disadvantages. However, companies use a combination of both to reap the maximum possible benefits from them. That is why a company’s capital structure will include …
Equity Vs. Debt: What are the Main Difference (6 Pioints Included) Read More »
Meaning of Equity Reserves Reserves refer to a component of shareholders’ equity, the amount kept apart for estimated claims or creation of contra asset accounts for bad debts. Reserves always have a credit balance. The reserve which belongs to equity shareholders or where it is marked for any purpose is equity reserves. The reserves appear …
Accounting for equity reserve: Types of Equity Reserves and Their Accounting Treatment Read More »
