The accounting equation in its simplest form states Assets = Liabilities + Equity. However, this may be expanded due to the components which make up the equity section. Equity is comprised in general of contributed capital and retained earnings. These components may be further broken down. For instance, contributed capital may consist of common stock and/or preferred stock; and retained earnings might include revenues, expenses, and dividends. If the business is not publicly traded, contributed capital would consist of the owner's contributions while retained earnings would include revenues, expenses, and any drawings made by the owner(s).