Assets, liabilities, and stockholders' equity are key components of a company's financial structure.
Assets are economic resources of an entity that can be expressed in monetary terms. They include physical items like buildings, equipment, and cash, along with intangible items like patents and goodwill. Assets are listed on the left side of a balance sheet.
Liabilities are financial obligations of an entity. They represent debts or obligations to pay money or provide goods or services in the future. Liabilities are listed on the right side of a balance sheet.
Stockholders' equity is the residual interest in the assets of an entity after deducting its liabilities. It represents the ownership claim of shareholders over the company's assets.
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