Assets = liabilities+(owner's equity+profit) \x0d\ Assets = liabilities+(owner's equity+income-expenses) \x0d\ Owner's equity can be divided into broad sense and narrow sense. Owners' equity in a broad sense includes paid-in capital, capital reserve, surplus reserve and undistributed profit, in which the sum of paid-in capital and capital reserve is called owners' equity in a narrow sense, and surplus reserve. \x0d\ In the formula of assets = liabilities+owners' equity, owners' equity is broad, while in the formula of assets = liabilities+(owners' equity+profits), owners' equity is narrow and profits are broad. That is to say, although both formulas are owners' rights and interests, one is broad and the other is narrow, with different connotations. \x0d\ owner's equity = assets-liabilities+income-expenses