Equity represents the owner’s claim on the business after all liabilities are deducted from assets. It reflects the true net worth of a company and is recorded in the Balance Sheet. Equity grows through profits and investments, and decreases through losses or withdrawals by the owner. Understanding equity is key to analyzing financial health. #AccountingBasics #Equity #BalanceSheet #OwnersEquity #FinancialLiteracy #BusinessFinance #AccountingMadeSimple #LearnAccounting