Terms to know

Asset - technically, its a resource "controlled bt the enterprise as a result of past events from which future economic benefits are expected to flow to the enterprise". To put ii simply it consists of the resources that an organization owns. Assets which are liquid, that is can be converted into cash within an year, are termed as current assets. Examples of current assets are inventory, current debtors etc. Other assets are known as long term assets and examples of these are plants and machinery, long term debtors etc
Liability - it is a "present obligation of the enterprise arising from past events , the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits". Or simply put, it is the amount that an organization owes. similar to assets, we can have current liabilities and long term liabilities. Current liabilities can be current creditors, provision for tax etc. Long term liabilities are long term loans etc.
owner's equity - also called equity or shareholders equity is the difference of assets and liabilities. It is the amount that owners own from the company. It increases by the investment made by the owners and decreases by distribution of assets among the owners (issuing of dividends)