Liabilities and owner's equity form the equities side of a balance sheet .When the catering business receives cash. secures a loan, or an infusion of money from the caterer himself, these transactions increase the owner's equity. An owner can be either a sole proprietor, which means a single owner, a partnership. which means it is jointly owned by two or more individuals; incorporated. which basically means the catering business exists separately from its owners as granted by a charter issued by one of the fifty United States The owner's equity in a cor- poration is called stockholders' equity. Liabilities, like assets, are also classified by a time frame. Liabilities are either short or long term. Current liabilities are those that will be extinguished or paid during the normal operating period, usually one year. Current liabilities are usually incurred by a caterer securing current assets to be used in the execu tion of a catering event. If a caterer purchases food for an event having 1,500 guests. the cost of the food is classified as a current liability. It is expected that the caterer will pay the current liability or accounts payable from the revenue received from the client other current liabilities include utility bills, payroll taxes, and local property tax