Assets, liabilities, and owner’s equity make up the foundation of any business. Assets are anything that a company owns that has economic value; this can include physical goods like cash, equipment, or inventory, as well as intangible goods such as copyrights, patents, and trademarks. Liabilities are any debts owed by the company to creditors or customers, while owner’s equity is the capital that the owners have invested in the business. When taken together, assets minus liabilities equals owner’s equity – showing how much value is owned outright by the business owners. Simply put, assets, liabilities and owner’s equity give you an understanding of the financial position of your business.