Assets, liabilities and owners’ equity are the three main components of a company’s balance sheet, which is an essential financial statement for any business. Assets represent what the company owns or is owed, such as cash and inventory. Liabilities represent money that the company owes, such as loans from creditors. Owners’ equity represents the amount of the assets remaining after the liabilities are subtracted, and is usually equal to the amount that owners have invested in the company. Together, these three components tell the story of a company’s current financial position and its ability to meet its obligations.