Shareholders' equity is often referred to as "net assets" and represents the residual amount of business assets that can be claimed by the owners.

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Shareholders' equity represents the residual interest in the assets of the business after liabilities are paid off. It is sometimes referred to as "net assets" because it represents the value that remains after deducting liabilities from assets.

Shareholders' Equity Is Often Referred to as "Net Assets" and Represents