What is Equity?

👉 Confused by accounting? Download this free cheat sheet: https://accountingstuff.com I said that Equity is what a business owes to its owners... but it’s a little more nuanced than that. If we go back to the Accounting Equation and rearrange it, we get: Equity = Assets − Liabilities In other words, Equity is the owner’s claim on the Net Assets of the business. It's what’s left over after all liabilities have been settled. 🔴 Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel 🔎FAQ ▪ My Favourite Accounting Book for Beginners → http://geni.us/5mKR7m 🔝 CLOUD ACCOUNTING SOFTWARE ▪ XERO (Free Trial / Discount) → https://xero5440.partnerlinks.io/08mfchsgfw8z ▪ QuickBooks Online USA (Free Trial / Discount) → https://geni.us/quickbooksonlineusa ▪ QuickBooks Online Canada (Free Trial / Discount) → https://geni.us/quickbooksonlinecanada 🚶FOLLOW ME ON ▪ Instagram → https://www.instagram.com/accountingstuff ▪ TikTok → https://www.tiktok.com/@accounting_stuff ▪ Facebook → https://www.facebook.com/accountingstuff #accounting #equity #bookkeeping