The owners' equity of an organisation is the same as the shareholders' funds of a company.

Question

Quizplus · Accepted Answer

Owners' equity represents the residual interest in the assets of an entity after deducting its liabilities. Shareholders' funds, on the other hand, represent the amount of money invested by the shareholders in a company plus the retained earnings. However, since both terms refer to the same concept of the ownership interest in an entity, the statement is true.

The Owners' Equity of an Organisation Is the Same as the Shareholders