Detailed visual description
Three nested rectangles show equity and the two sources that change it. Owner investments increase equity, and owner distributions decrease it. Revenue increases equity, and expenses decrease it. Borrowing increases assets and liabilities by equal amounts, so it does not change equity when the loan begins.
Review apparatus
Visual provenance and review
- Technique
- deterministic svg
- Role
- structural
- Review state
- candidate
- Rights
- CC0-1.0 · Project-authored teaching diagram
Review notes
- Borrowing is named in the caption rather than shown as a layer, because it does not move the residual and a layer would imply that it does.