From a financial point of view, equity represents those assets, rights and obligations owned by a company. In other words, equity is the set of economic and financial means that an entity owns and uses in order to carry out its professional activity.
Therefore, in economic terms, a homogeneous set of assets is called an asset mass. In other words, the assets of a company are a set of assets, rights and obligations that have a certain homogeneity. In addition, these elements of heritage must have a similar economic or financial function within a company.
Types of assets
The patrimonial mass can be classified into three types:
- Assets assets.
- Assets of the liabilities.
- Assets of the net worth, this being the difference between the liabilities and the assets of the company.
These are the main characteristics of the different types of assets.
The assets' equity mass is made up of assets and property rights and represents what a has; the capital stock of assets is the result of past actions that will revert to future benefits. It is also called the economic structure of the company.
Assets of Liabilities
The capital stock of liabilities is made up of obligations which will mean a reduction of its resources for the company. Therefore, it represents the payment commitments and debts acquired by the company. It is also called the financial structure of the company.
Equity Mass of Equity
The equity mass of equity is made up of all those variations that affect equity, among them, the contributions made by the partners of the company, the accumulated results of previous years, whether they are losses or profits, as well as undistributed profits. or reservations.
The equity mass of net worth represents, therefore, the set of debts contracted by the company with its own partners.