What does the term "equity" represent in accounting?
What does the term "equity" represent in accounting?
The total liabilities of a company.
The total assets of a company.
The ownership interest in a company.
The expenses incurred by a company.
3 answers
The ownership interest in a company. Equity in accounting represents the owner's stake in the business assets after all liabilities have been deducted. It includes common stock, retained earnings, and additional paid-in capital.
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The ownership interest in a company. Equity in accounting represents the owner's stake in the business assets after all liabilities have been deducted. It includes common stock, retained earnings, and additional paid-in capital.
1 answer