owners' equity
Definition
Capital employed in a firm, computed by deducting the book value of the liabilities from the book value of the assets. Whereas the term 'assets' universally means 'total assets,' some experts propose that the term 'liabilities' should not include long-term liabilities because (since they are incurred in funding the operations of the firm) they are part of the capital employed. Being based on the historical value of the assets, it rarely reflects the current (market) value of the funds invested. Also called net assets, net worth, shareholders' equity, or shareholders' funds.
owners' equity is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
owners' equity appears in the definitions of the following terms:
financial position,
expense recognition,
report format,
income statement,
account,
shareholders equity,
equity capital,
account format,
shareholder equity,
liability
and
owners' equity appears in the other terms: permanent owners' equity account, statement of owners' equity
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