A note from Sary

Assets - Liabilities = Owner's Equity Assets are things the company owns that have value: products, equip-ment, stock, etc. Liabilities are obligations the firm hasn't yet discharged: loans, financing, etc. What's left over when you discharge all of the business's liabilities is owner's equity, the company's "net worth."

Sary The Personal MBA, page 180 · October 30, 2023 Save to shelf
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