Equity Section

A part of the balance sheet used to present the book balance related to the financial value accruing to the owners/investors. This section identifies the capital investment, accrued earnings and accumulated payments to owners over time.

Bookkeeping – Debits and Credits in Equity Accounts (Lesson 10)

Equity Accounts

The equity section of the balance sheet identifies the approximate dollar value of net worth accrued to the owners/investors.  Equity type accounts can have both credit and debit balances.  By far the most preferred is a credit value.  Debit values does not mean that something is wrong, actually it can be a great sign of a good operation.

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