The document explains the key differences between equity and assets in a business context. Equity represents ownership value after liabilities are deducted, while assets encompass all resources that generate future financial benefits. It highlights how these concepts are represented on balance sheets and the implications of depreciation.

1. The Key
Difference
Between
Equity And
Assets

2. Table of content
○Hello
○Introduction
○What is equity and asset?
○Difference between equity and assets

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4. Equity and assets both provide value to a
company and a business and help it operate or
generate profits. Most people think that assets
and equity are the same, but it is not true. There is
a lot of difference between equity and assets. If
you are one of these people who think that assets
and equity are the same, then you need to know
the difference between equity and assets

5. What is
equity

6. It is ownership of assets that may have debts or
other liabilities attached to them. Equity is the value
of assets left in the business for its owners after
removing all the liabilities like bank loans and trade
payables. It represents the amount of money that the
company would return to shareholders in the event
of liquidation.

7. What Are
Assets?

8. All resources and property that are available in a
business in the form of cash, receivables, inventory,
buildings, and any other properties that can be used
in the future to derive financial benefits for the
business are called as assets.

9. Difference Between
Equity And Assets

10. Equi
ty
assets
Assets are these things that are
bought by the company and have a
value attached to them.
Definition
It is money bought by the
Company's Owners to start and
run the business.

11. Equi
ty
assets
Assets are reflected on the Right
Side of the Balance sheet.
Balance sheet
It is reflected on the Left Side of
the Balance sheet.

12. Equi
ty
assets
Depreciation affects assets.
Depreciations
There is no effect of
depreciation.

13. Equi
ty
assets
Assets are classified into Fixed
Assets, Current Assets and
Tangible Assets and Intangible
Assets.
classification
There is no Classification
of Equity.

14. Equi
ty
assets
Forgiving Financial Benefits to
Businesses by utilisation.
purpose
Buying Assets and Paying off
Debts.

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difference between equity and asset.