
06/26/2025
๐ Personal Finance Tip of the Day!
The image below illustrates a simple way to understand financial statements โ using a metaphor most people can relate to: owning a home.
๐ House value = Assets
๐ฆ Mortgage = Liabilities
๐ Equity = Shareholdersโ Equity
This analogy breaks down what a business owns, owes, and what itโs really worth to its owners.
๐ก Just like paying down your mortgage increases your home equity, companies grow value by reinvesting profits โ known as retained earnings.
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Visit: https://TrustedCompanyReviews.com/Personal-Finance
๐ Want more ?
Visit: https://trustedcompanyreviews.com/personal-finance/