What is the difference between liabilities and shareholders' equity?

The liabilities represent its obligations. Both liabilities and shareholders’ equity represent how the assets of a company are financed. Financing through debt shows as a liability, while financing through issuing equity shares appears in shareholders’ equity. What Are the Key Components in the Accounting Equation?

What is the difference between assets and liabilities on a balance sheet?

On the balance sheet, the assets side represents a company’s resources with positive economic utility, while the liabilities and shareholders equity side reflects the funding sources. What are the Components of the Accounting Equation? How Does the Double Entry Accounting System Work?

What are common liabilities in a balance sheet?

For instance, common liabilities include debt securities such as loans, accounts payable (A/P), accrued expenses and deferred revenue. Equity → The equity section of the balance sheet, often called “Shareholders’ Equity”, is the net assets of a company (i.e. the remaining value of a company’s assets after subtracting liabilities).