brk1yn

Assert = Capital + Liabilities (break even point for any business)
Asserts Asserts  Capital + Liabilities (profitable situation)
A firm owns money not only to creditors but also to its owners, that is why we equation asserts = Capital + Liabilities. If asserts are to be liquidated, value asserts should always be able to pay back money it owns owners and creditors.
1. Look at this way.. Asserts are financed, by capital (Equity (owner’s/shareholders money) + Debt (long term loans))
2. Liabilities (money owned to creditors, suppliers etc) is what company owns to creditors, banks etc.
3. Net Income which is calculated using in Income Statement. Can be given to equity shareholder in form of dividends or it can be ‘retained’ in business in form of retain earnings. Retain earning can be used in variety of ways, for instance, financing R and D project etc.