Based on the video "The differences between finance and accounting".... Liabilities, in context, means" " What I own" Equity, in context, means: "What I have". Accounting equations, basically said that: Equity = Assets + Liabilities. Income statement, balance sheets and cash flows analysis are the most common reports produced by accountants. Accountants are, basically, focused on future business transactions. Accounting is the usage of money and recording transactions.