Which of the following statements best describes the owner's equity in an entity?

Name: Which of the following statements best describes the owner's equity in an entity?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Owner's equity represents the residual interest in assets after deducting liabilities, which means it is the amount of assets that belongs to the owner after all debts and obligations are paid. Therefore, option D - the residual interest in assets - is the best description of owner's equity in an entity.

Which of the Following Statements Best Describes the Owner's Equity