What is the difference between Owner s Equity and Fixed Assets ?

Owner's Equityand fixed assets are two concepts and two categories. For example, if a boss invests 1 million yuan to set up a business, the 1 million yuan, including the profits formed later, are the owner's equity, that is, it belongs to the boss. And these 1 million bosses can be used to buy raw materials, fixed assets, and even bonds, or directly put them in the bank.

Owners' Equity vs. Shareholders' Equity.

are all the net assets of the company.

Assets after deducting liabilities are enjoyed by the owners and shareholders of the company), in essence, there is no difference, and shareholders' equity is the owner's equity. The two are just called differently, a limited liability company is used to be called owner's equity, and a joint-stock company is used to be called shareholders' equity.

** of the owner's interest.

Including the capital invested by the owner, other comprehensive income.

retained earnings, etc., usually made up of equity (or paid-up capital.

Capital reserve (including equity premium or capital premium, other capital reserves), surplus reserve and undistributed profits.

The capital invested by the owner refers to the part of the capital invested by the owner in the enterprise, which includes the registered capital of the enterprise.

or the amount of share capital, including the invested capital.

The amount exceeding the portion of registered capital or share capital, i.e., capital premium or equity premium, is reflected as capital reserve (capital premium).

Fixed assets refer to tangible assets that have two characteristics at the same time:1Held for the purpose of producing goods, providing services, leasing or business management; 2.

Useful life of more than one fiscal year. Owner's Equity Package; Paid-in capital, capital reserve, surplus reserve and undistributed profits Machinery and equipment are assets, and capital is the registered capital invested by investors.

Assets are tangible and intangible assets such as money, materials, and equipment owned by an enterprise; Owner's equity is the assets invested and the income received by the owners of the business. Beg.

<> In the accounting equation, assets = liabilities + owners' equity, i.e., owners' equity is a part of the assets.

1. The owner's equity includes the capital invested by the owner, the gains and losses directly included in the owner's equity, the retained earnings, etc., which is usually composed of paid-in capital (or share capital), other equity instruments, capital reserve (including capital premium or equity premium, other capital reserve), other comprehensive income, special reserves, surplus reserve and undistributed profits.

In profit distribution, profit available for distribution = net profit (net loss) realized in the current year + undistributed profit at the beginning of the year (- uncovered loss at the beginning of the year) + other income.

Profit available for distribution to investors = profit available for distribution - accumulated funds withdrawn from the surplus reserve, which can be used to cover losses, increase capital or distribute cash dividends or profits, etc.

Surplus reserve is the accumulated funds withdrawn from the net profit of the enterprise in accordance with the laws and regulations of the state and other relevant provisions.

Undistributed profit refers to the profit of the net profit realized by the enterprise after making up for the loss, withdrawing the surplus reserve and distributing the profit to investors.

2. Assets include monetary funds, accounts receivable and prepaid, trading financial assets, inventories, fixed assets, intangible assets and long-term amortization expenses.

Monetary funds include cash in hand, bank deposits and other monetary funds (including bank draft deposits, cashier's check deposits, credit card deposits, letter of credit margin deposits, investment deposits and foreign deposits, etc.).

Receivables and prepayments include notes receivable, accounts receivable, prepaid accounts, dividends and interest receivables, and other receivables.

Transactional financial assets are mainly financial assets held by enterprises for the purpose of the near future (holding period of less than one year), such as enterprises, bonds, wealth management products, etc., purchased from the secondary market for the purpose of earning price differences.

Inventory refers to the products or commodities held by the enterprise in its daily activities, the products in the production process, the materials or materials stored in the production process or the provision of labor services, etc., including all kinds of materials, products, semi-finished products, finished products, commodities and packaging, low-value consumables, consignment goods, etc.

Fixed assets are held for the production of goods, the provision of services, leasing or business management, and have a useful life of more than one fiscal year.

Such as equipment, appliances and tools that directly serve production and operation; Or it is indirectly serving the production and operation of staff dormitories, staff canteens, etc.

Intangible assets are identifiable non-monetary assets that are owned or controlled by an enterprise and do not have a physical form. It mainly includes patent rights, non-patented technologies (know-how, know-how), trademark rights, copyrights (copyrights), land use rights, concessions (business concessions, franchise rights), etc.

Long-term amortization expenses refer to the expenses that have been incurred by the enterprise but should be borne by the current period and subsequent periods with an amortization period of more than one year, such as the improvement of the right-of-use assets leased by lease.

Owner's equity refers to the economic interests that should be vested in the owners of the enterprise in the past. Net assets are the present value of a company's future sustainable cash inflows

It refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise; Assets refer to the net amount of total assets of an enterprise minus liabilities.

It refers to the residual rights enjoyed by the owner after deducting the debts of the enterprise. Understand the value preservation of assets, as well as the concept of equity of creditor's rights to distinguish and understand the specific differentiation methods.

The difference between ownership equity and assets: Taking a house as an example, the asset is the value of that house, and the owner's equity is the proportion of you and your lover and children.

Equity refers to assets in accounting. What belongs to the owner is called the owner's equity, and the equity that belongs to the creditor is called the creditor's equity. The two are collectively referred to as equity.

Owner's equity refers to the ownership of the net assets of the enterprise by the enterprise investors. According to the accounting identity of "assets = liabilities + owners' equity", owners' equity is the remaining assets of the enterprise after the total assets minus all liabilities, so it is also called "net equity".

The ** of owner's equity includes the capital invested by the owner, other comprehensive income, retained earnings, etc., which is usually composed of equity (or paid-in capital), capital reserve (including equity premium or capital premium, other capital reserve), other comprehensive income, surplus reserve and undistributed profits.

For example, there are now 3 people, namely enterprise manager A, shareholder B and creditor C, the money that A can control is assets, B is the owner's equity, C is the liability, and A's money is obtained from B and C, that is, A=B+C.

Now ignore the existence of C, that is, A=B, that is, in the absence of liabilities, the asset is equal to the owner's equity, at this time B gives the money to A for disposal, because B entrusts the money to A for processing, so A has the right to dispose of the money, and B loses control over the money, which is the difference between assets and owners' equity.

If you compare fixed assets and owners' equity, and find that the fixed assets are greater than the owners' equity, it means that the company's liabilities are relatively high, the asset-liability ratio is unbalanced, and the risk is relatively large, because:

Debt repayment pressure has increasedIf the company's debt is too high and the repayment ability is insufficient, it will face debt repayment pressure and even lead to debt default, which will cause major risks to the operation and development of the enterprise.

Liquidity of assets decreases: Fixed assets have poor liquidity and are not easy to convert into cash, if enterprises need to raise funds quickly, fixed assets usually require a certain amount of time and capital costs, which will lead to a decline in the liquidity of assets of enterprises and increase the risk.

Market change riskIf the fixed assets of the enterprise account for a relatively large proportion, and factors such as market changes or technological progress lead to a decline in the value of the fixed assets of the enterprise, or a decline in market demand, this will have a greater impact on the financial status of the enterprise, and then affect the profitability and competitiveness of the enterprise.

Therefore, enterprises should reasonably control the scale of fixed assets, ensure the balance of assets and liabilities, avoid excessive debt, and maintain a certain amount of liquid funds, improve the liquidity of enterprises' assets, reduce the risk of market changes, so as to ensure the financial health and sustainable development of enterprises.

I think it's good.

Hello dear, the fixed assets belong to the related matters after the asset inventory. According to the basic principle of knowing and filial piety, the draft believes that the fixed assets that have not been registered outside the books are caused by errors in the previous period, and it is necessary to register the relevant recognition amount of fixed assets verified before approval, and adjust the profit and loss of previous years. After approval, it is included in retained earnings, so the accounting requirement is that if management errors are found in the current year, resulting in a profit, general assets are required to offset management expenses.

Management expenses are recognized in the event of inventory losses. These expenses are carried forward from the end of the current period profit and loss to the current year's profit, and finally affect the change in the amount of owners' equity. Then, the corresponding surplus fixed assets are considered to be caused by the mistakes that occurred in the previous year, so the retained earnings of the previous year are adjusted.

This is because the amount of retained earnings recorded is due to the profit or loss of previous years. Regardless of whether the current year adjustment or the previous year's retained earnings are adjusted. They will all reflect as a change in owner's equity.

Their fundamental differences are:

Assets emphasize the dominance of this account.

Liabilities and owners' equity emphasize the ownership of this account.

The assets at our disposal are all derived from liabilities and owners' equity, and their ownership is actually from the outside. (Not very precisely, owner's equity is actually a liability, but this debt does not need to be repaid in a hurry).

How to judge, it's very simple.

For example, "accounts receivable" emphasizes our control over the money, which we want to take from others.

prepaid", and we also have control over this money. So it's also an asset.

Accounts payable", that is, the money comes from the outside, the vesting is outside, and we will have to pay it back sooner or later. Liability.

If owner's equity is understood as a type of liability in the broad sense, this entry is not difficult to understand, right?

Borrow: Bank deposit.

Credit: Paid-up Capital – Investors.

This is the same entry as the entry below.

Borrow: Bank deposit.

Credit: Accounts Received in Advance – Customers.

Assets refer to the resources that are formed by the past transactions or events of the enterprise, owned or controlled by the company, and are expected to bring economic benefits to the enterprise.

Owner's equity refers to the residual equity enjoyed by the owner after deducting liabilities from the assets of the enterprise.

The assets themselves do not include the items of Wang's judgment of owner's equity, but assets = liabilities + owners' equity.