Owners Equity: What It Is and How to Calculate It
We’ll talk more about the terms used for partnerships and corporations later in this article. Upon calculating the total assets and liabilities, company or shareholders’ equity can be determined. For example, the equity of a company with $1 million in assets and $500,000 in liabilities is $500,000 ($1,000,000 – $500,000). For this reason, owner’s equity …
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