The dollar value of a business is referred to as its equity. When a business is organized as a corporation, the term used on the firm's balance sheet is "stockholders' equity." For a small business ...

When you buy stock in a company, you’re buying an equity stake. But what does owner’s equity represent? In terms of stock ownership, equity represents the amount of money owed to a company’s ...

Investing your own money in your business can improve the company's cashflow or make funds available for new equipment, research and development or hiring additional staff. Recording capital ...

Assets are quantifiable things — tangible or intangible — that add to your company’s value Liabilities are what your company owes to others, whether that’s an investor or a bank that issued a loan ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.