The interest in the assets of an entity that remains after subtracting its liabilities is referred to as:
A)a gain.
B)equity.
C)a debt.
D)income.

Question

Quizplus · Accepted Answer

Equity is the residual interest in the assets of an entity after deducting liabilities. It represents the ownership interest in the business and is sometimes referred to as net assets or shareholders' equity. A gain refers to an increase in the value of an asset or an improvement in financial performance, while a debt represents an obligation to pay money or other forms of consideration. Income refers to revenue earned by an entity from its operations.

The Interest in the Assets of an Entity That Remains