-from Fool Article Finishing the Balance Sheet
" If you look at a company from a balance sheet perspective, it belongs to two parties: its owners and its creditors. Therefore, when you subtract the creditors' equity (liabilities) from total assets, what's left over is owners' equity. Owners' equity includes preferred stock, common stock, additional paid-in capital, treasury stock, retained earnings, appropriated retained earnings, and foreign currency translation adjustment. "
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