The difference between a company's assets and its liabilities, or the residual interest in the assets of an entity that remains after deducting its liabilities, is called:
A)Net loss.
B)Net income.
C)Shares.
D)Equity.
E)Revenue.

Question

Quizplus · Accepted Answer

The difference between a company's assets and its liabilities is its equity. This represents the residual interest in the assets of the entity that remains after deducting its liabilities. Net loss and net income refer to the profitability of a company, shares represent ownership in the company, and revenue is the income generated from the sale of goods or services.

The Difference Between a Company's Assets and Its Liabilities, or the Residual