equity & shared capital

Kelly7

Hi guys

I haven't even started my level 4 yet but bought a couple of books & have started to read the financial statements one first thinking I might have some idea of this after doing these in ap1 and ap2. I have only got to page 11 but it says the accounting equation is assets - liabilities = equity when I've learnt it equalled capital?

Can anyone help me out with what equity is? There is also a mention of share capital so if anyone can shed any light on this too I would greatly appreciate it.

Not a great start, promise not to flood the forum with too many questions over the next 9 months.

Xxxx

sharoneyre

Capital and equity are the same really -equity is things like shares, retained profit, share capital etc
It will all become clear when you understand how limited companies operate

topcat

Kelly7 wrote: »

Hi guys

I haven't even started my level 4 yet but bought a couple of books & have started to read the financial statements one first thinking I might have some idea of this after doing these in ap1 and ap2. I have only got to page 11 but it says the accounting equation is assets - liabilities = equity when I've learnt it equalled capital?

Can anyone help me out with what equity is? There is also a mention of share capital so if anyone can shed any light on this too I would greatly appreciate it.

Not a great start, promise not to flood the forum with too many questions over the next 9 months.

Xxxx

Kelly thanks for posting this you just helped me suss out another question :001_smile:

Kelly7

Ooh I posted this back in September. I ask too many questions lol. x