The three primary sections of a balance sheet are assets, liabilities and stockholders' equity. Liabilities and equity are the two sources of financing a business uses to fund its assets. Liabilities ...

Equity is how much money you or your shareholders would have left if you were to liquidate the company and pay off all the debts. On your balance sheet, your company's assets equal your liabilities ...

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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.