Equity

Overview

Equity represents the owners share of a business. The typeical accounts in equity include the following.

• Capital - the amount owned by the shareholders of the firm.
• Revenue - money that was earned in the given period.
• Expense - money that was paid out in the course of business during the period.

Tangible Equity

Tangible equity is the equity of a firm with intangible assets such as goodwill subtracted out. It is intended to show the equity of the firm that represents hard assets that could be sold.