The Equity in the Business


Learning Objectives

By the end of this chapter, you should be able to:

•  Describe the components of the Equity section of the Balance Sheet.

•  Distinguish among different forms of business structure.

•  Explain the characteristics of the different types of equity.


The equity component of the Balance Sheet contains the information relating to company ownership. Though we have focused almost entirely on the corporate form for our discussion, the structure of the Balance Sheet and the Income Statement are consistent across all business forms. In today’s marketplace, increasingly, there are variations ...

Get Finance and Accounting for NonFinancial Managers, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.