The owners of a business have a residual interest in the assets of the company after both current and long-term liabilities have been satisfied.

Question

Quizplus · Accepted Answer

This statement is true. The owners of a business have a residual interest in the assets of the company after all its liabilities, including current and long-term, have been paid. This residual interest is known as equity or owners' equity.

The Owners of a Business Have a Residual Interest in the Assets