And let's say that's all of their liabilities.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

liabilities.

His debts amount to more than he can pay.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

I owe the bank 750,000.

Her debts amount to more than she can pay.

Most times the liabilities are pretty easy to get a handle on.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

To pay off his debt,

This was equity.

This is the equity...

So we could say, well, a new figure comes out ... let's see African debt.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

And forgive us our debts, as we forgive our debtors.

And forgive us our trespasses, as we forgive those who trespass against us.

And forgive us our trespasses, as we forgive them that trespass against us.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

And this is an annual income statement.

What I'm squaring off in blue, that's the

So where does this lead?

Well I have cash, I have 250,000 worth of cash.

It doesn't matter.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

It should start to make a little bit of intuitive sense

20 plus 80 plus 5, so it's 105,000. 105,000 total liabilities.

He stuck me with debts of 1,000,000 yen.

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

Now you could also have a yield curve for other types of debt.

He only needs 90,000, but let's say he borrows 100,000.

So given that 2 on 100,000 debt.

So now I have this liability.

Gobble, gobble, gobble, gobble, gobble.

I owe nothing to anyone.

And we'll assume right now that your debt is your main liability.