Liability

What is a Liability? In accounting, a liability is debt owed to company or individual. Liabilities are a claim on a company’s assets by the creditors. Liabilities require a payment of assets, such as cash, or a performance of a service. A liability occurs from past transaction that requires a future economic payment. Many liability […]

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Revenue

What is Revenue? Revenue is income from selling a product or service. A company earns revenue when it receives an asset for selling to a customer. The asset could be cash, accounts receivable, or other assets. Revenues are also called sales. Revenue goes on the company’s income statement. Total revenue is called the top line

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Equity

Equity is owners’ investment in a company. Stockholders’ equity equals assets minus liabilities and it appears on the balance sheet. What is Equity? Equity appears on a company’s balance sheet. As equity increases, the value of the owners’ investment increases. There are several alternate names for equity: stockholders’ equity shareholders’ equity owners’ equity owners’ capital

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