Which of the following defines shareholders' equity?
A) Probable debts or obligations of an entity as a result of past transactions which will be paid with assets or services.
B) Assets plus liabilities.
C) Probable future economic benefits owned by an entity as a result of past transactions.
D) The financing provided by the owners and the operations of a business.

Question

Quizplus · Accepted Answer

Shareholders' equity refers to the financing provided by the owners (through their initial and additional investments) and the retained earnings generated from the operations of a business. It represents the residual interest in the assets of a business after deducting liabilities.

Which of the Following Defines Shareholders' Equity