Equity is a measure of the monetary contributions that have been made directly or indirectly on behalf of the shareholders of the company.

Question

Quizplus · Accepted Answer

Equity represents the residual interest in the assets of the company after deducting liabilities, and it includes the contributions made by shareholders through capital investments or retained earnings. Therefore, equity measures the value that has been added to the company by its shareholders.

Equity Is a Measure of the Monetary Contributions That Have