EQUITY
For our basic knowledge, equity is things that we own or brought for our daily use. Example house, cars, handphone that can be sold back in order to get cash. Stock and bonds in a large amount are also considered as equity. Gold, silver and gems are also equity because they can be sold (liquidify) into cash inorder to gain profit. Thus not all gold is an equity, only the ones that are being kept in banks are call equity. It is important to bear in mind that everthing that is able to be turn cash is equity.
LAIBILTY
We as general people with no basics in business should no what is liabilty. It is crutial to differentiate between liablity and asset. When we know to differ between these two, we are able to think the business mind fundamantle. Henece we can save money and generate incom at the same time. Example of a laiblity is a car, house and furniture. Thing that do not generate income is considered as a liabilty, for instance a shop generate income but it is a liabilty. Unless you rent part of the shop then it will be considered as an asset.
ASSET
What is asset? Well house and cars can be an asset, inorder to do this you must rent your house. So, you generate income from renting your house. The hosue that you rent will then be an asset. Same go to cars, people whom has car rental company is using cars as their asset to generate income.
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