Asked • 04/19/19

Why only stockholder equity in the well-known accounting equation?

Assets = liabilities + stockholders' equity. Isn't this an oversimplification? The (traded) company may have raised money through stock, but maybe it also issued bonds, has profit this year, etc. Likewise(?), stockholders' equity is used when trying to valuate a company... but I don't see many mentions of bonds, etc. Why the complete emphasis on equity?

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