The owners' interest in the assets of a corporation is known as:
A) shareholders' equity
B) expenses
C) assets
D) revenues

Question

Quizplus · Accepted Answer

Shareholders' equity represents the owners' residual interest in the assets of a corporation after deducting liabilities. Therefore, the owners' interest in the assets of a corporation is known as shareholders' equity. Expenses, revenues, and assets are all related to the financial transactions and operations of a corporation, but they do not represent the owners' interest in the same way that shareholders' equity does.

The Owners' Interest in the Assets of a Corporation Is