There are three sources of assets, namely, capital invested by owners, funds borrowed by creditors and income generated from production and operation. The third part can be divided into the part owned by the owner (reflected in undistributed profits) and the part owned by the creditor (reflected in interest payable or long-term loans, depending on the type of loans). From these three sources, assets completely belong to owners and creditors, and thus form owners' equity and creditors' equity (i.e. liabilities), which are collectively called equity. From the introduction of the formation of rights and interests, we should be able to fully understand why assets = rights and interests. As for the equity book, it will be explained in the primary finance, and lz can review it again.

It should be pointed out that minority shareholders' rights and interests often exist in consolidated statements. Some people think that this does not belong to the category of owner's equity. Actually, it's all wet. Whether it is a major shareholder or a minor shareholder, they will always be the owners of the enterprise, which fully conforms to the definition of owner. Undoubtedly, the identity of assets = equity is the basis of double entry bookkeeping.