Which of the following refers to the claims that stockholders have against their firm's assets?
A) Loans payable
B) Owners' equity
C) Liabilities
D) Explicit costs

Question

Quizplus · Accepted Answer

Owners' equity refers to the claims that stockholders have against their firm's assets. It represents the residual value of the firm's assets after deducting its liabilities. Loans payable and liabilities refer to the amount of money that the firm owes to its creditors while explicit costs refer to the out-of-pocket expenses incurred by a firm in conducting its business activities.

Which of the Following Refers to the Claims That Stockholders