Equity in a business means that one owner cannot own 100% of the company's shares with others and that the accounting of the business must be separate of all his personal affairs. This means that the person (owner) should not list any personal assets on the company's balance sheet. For example, car expenses should not be included on the balance sheet.  The revenue/cost period: revenue and cost period in accounting during which the business earns revenue from normal business activities. This is the normal business income that the company gets from selling its products and services. Question 3 Assets The resources of a business that the owner owns are called assets, e.g. building, machinery, etc. In other words, we can tell what belongs to a person as it relates to the business and has value, commitment, and legacy.  LiabilitiesLiabilities is the depth of beneficiary by a person or company to a bank or other company, like if a person buys a car for $10,000 and pays 2,000 in cash, installments of $8,000 must be paid in several installments.