The residual interest in a company's assets after deducting liabilities is
A) net income.
B) equity.
C) noncontrolling interest
D) earned capital

Question

Quizplus · Accepted Answer

Equity represents the residual interest in a company's assets after all liabilities have been deducted. It is essentially the value that would be returned to shareholders if all the assets were liquidated and all the company's debts were paid off.

The Residual Interest in a Company's Assets After Deducting Liabilities