What do assets, liabilities, and equity each represent?

• Equity is simply the company's cash balance, since that is the pool of value ultimately available to the owners
• Liabilities are the owners' residual claim on the firm, ranking behind lenders once the assets are all paid out
• Assets and liabilities are always equal by definition, so equity is just a memo line with no value
• Assets are resources controlled; liabilities are obligations owed; equity is the residual owners' claim
• Assets are the obligations the company owes to others, while liabilities are the resources it owns and controls