*(Don't forget to check your Email & WhatsApp daily)*📱📧💬 Today, Let's understand the difference between *Assets vs. Equity* *Definition:* *Assets* are everything a business owns that has value. This includes cash, inventory, equipment, real estate, and anything else that can contribute to generating income. *Equity* represents the owner’s stake or share in the business. It’s calculated as the difference between the business's assets and liabilities (what the business owes). *Formula:* Equity = Assets - Liabilities *Example to Simplify:* Imagine a business owns ₹1,00,000 worth of assets, including cash, furniture, and stock. However, it also owes ₹40,000 in loans and other liabilities. *Here’s the breakdown:* Total Assets = ₹1,00,000 Total Liabilities = ₹40,000 Owner’s Equity = ₹1,00,000 - ₹40,000 = ₹60,000 So, the owner’s equity in the business is ₹60,000. Understanding this simple relationship between assets, liabilities, and equity is crucial to knowing how financially healthy a business is. React with a "👍" if this explanation made things clearer for you! 😊