The accounting equation states that Assets = Liabilities + Stockholders' Equity.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the difference between total assets and total liabilities.

Liabilities

Obligations owed by a company to parties external to the business, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned by a company that have economic value and can provide future benefits, including cash, property, and equipment.