What is Revenue?

Revenue is what a company has earned. Sometimes this is referred to as Sales or Income. Revenue is shown on a Profit and Loss Report also known as an Income...

What is Owners’ Equity?

Owners’ Equity appears on a company’s Balance Sheet and is the amount owners have put into the company less what they’ve taken out, plus net income for the life of the company. Per the basic accounting formula, Owners’ Equity must equal Assets minus...

What are Liabilities?

Liabilities appear on a company’s Balance Sheet and are what the company owes. Per the basic accounting formula, Liabilities have to equal Assets minus Owners’ Equity. The company is obligated to pay their...

What are Assets?

Assets appear on a company’s Balance Sheet and are what the company owns. Per the basic accounting formula, Assets have to equal Liabilities plus Owners’ Equity. If the company desired, they could sell the Assets, since they own...