Equipment
Equipment is the personal belongings of your character, as shown on the bottom-right of your Character Sheet. There are 3 types: Weapon, Armor, and Accessories. Your character can only have one Weapon and Armor equipped at a time, and up to 3 Accessories at a time.
Weapons are tools primarily used in Combat, and determine the kind of dice/bonuses you'll receive when using it. Bonuses and Effects for Weapons usually revolve around a special type of damage, or a bonus when a condition is met.
Armor is what your character wears, and is used as a form of protection against attacks. Bonuses for these are usually resistances against certain kinds of attacks, or provide advantage on certain rolls.
Accessories are small additions to your character that can have all kinds of effects, be it in or out of combat. These are often the items with the largest variance in rarity, and can be used to enhance your character's builds in all sorts of ways.