The residual interest in the resources of an entity that remains after deducting its debts to third parties defines
A)assets.
B)liabilities.
C)equity.
D)retained earnings.

Question

Quizplus · Accepted Answer

The residual interest in the resources of an entity that remains after deducting its debts to third parties defines equity. Equity represents the owners' claims on the assets of a company after all debts and liabilities have been paid off.

The Residual Interest in the Resources of an Entity That