Owners'equity is defined as the stockholders'residual interest in the net assets of the firm.It includes two components:contributed capital，earned capital(retained earnings).

Both of owners'equity and liabilities are acquisition of enterprises'assets.They stand in the right side of balance sheet.The mix of them is termed the enterprises' capital structure，that is，how the enterprise is financed.And the left side of a balance sheet is asset，which tells us what a business owns.

Assets=Liabilities+Owners'Equity