Owners' equity consists of two sources: (a)the amount that the owners originally invested and (b)profits earned by and reinvested in the company.

Question

Quizplus · Accepted Answer

Owners' equity is the residual interest in the assets of the company after deducting its liabilities. It includes both the initial investment made by the owners and the profits earned by the company and reinvested for growth and expansion.

Owners' Equity Consists of Two Sources: (A)the Amount That the Owners