 Hello, in this discussion we will discuss the discussion question of compare and contrast liabilities and equity. When considering an essay question like this, one approach to this type of essay question would be to first look at those two terms, those two terms of liabilities and equity, define those two terms as best we can, and then look for the similarities, listing out the similarities and listing out the differences between these two concepts. Before we get into doing that, I do want to point out that when we are first learning accounting, we often don't really see the similarities between liabilities and equity. We see, you know, we have an idea of what those two terms are, but they're also, they're often not very linked in our minds. Later on, and I want to suggest that there are a lot of similarities between these two terms and it's helpful to understanding the accounting process, the financial statement.