The stockholders' equity of a firm can be defined as
A)net current assets.
B)net noncurrent assets.
C)a residual interest.
D)total assets plus total liabilities.
E)the owners' claim to the assets and liabilities.

Question

Quizplus · Accepted Answer

Stockholders' equity represents the residual interest in the assets of a firm after liabilities have been deducted. In other words, it is the portion of the company's assets that belongs to the shareholders. Therefore, choice C is the correct answer.

The Stockholders' Equity of a Firm Can Be Defined as