1. assets: assets are the resources and rights owned by the company and can be used to support the company's business activities. Assets mainly include current assets and fixed assets. Current assets refer to the assets that a company can realize and consume in a short period of time, such as cash, accounts receivable, inventory, etc., which reflect the company's liquidity and solvency. Fixed assets refer to the company's houses, equipment, machinery and other long-term assets that reflect the company's production capacity and development scale.
2. Liabilities: Liabilities are debts and obligations owed by the company to the outside world, and are the currencies and commodities that the company needs to repay. Liabilities mainly include current liabilities and long-term liabilities. Current liabilities refer to debts, accounts payable and short-term loans that need to be repaid within one year. , reflecting the company's solvency and liquidity. Long-term liabilities refer to debts, long-term loans and bonds payable that need to be repaid in more than one year. , reflecting the company's financing structure and capital structure.
3. Owner's equity: Owner's equity refers to the part of the company's net assets, which is the remaining part of assets after deducting liabilities, reflecting the company's net assets and shareholders' equity. Owners' equity mainly includes capital stock and retained earnings. Equity refers to the invested capital and the part left by investors from income, and retained income refers to the undistributed profit left by enterprises from profits.