The stockholders' equity of a firm can be defined as
A)net current assets
B)a residual interest
C)total assets plus total liabilities
D)the owners' claim to the assets and liabilities
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Stockholders' equity is the residual interest in the assets of a company after deducting liabilities. In other words, it is what's left over for the owners of the company after all debts and expenses have been paid, and it represents the owners' claim to the assets of the company. Choice B accurately states this definition, making it the best answer.

The Stockholders' Equity of a Firm Can Be Defined as