This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
The ownership the shareholders have in the company, represented by the Capital Stock, Retained Earnings, Treasury Stock, and other.
Look at the Financial Statements to see how Equity is broken out into the different sources.
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Balance Sheet Equation: Total Assets = Total Liabilities + Equity |
Also called Shareholders’ Equity or Net Worth.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.