Shareholders' equity is the difference between a firm's assets and liabilities, as shown on the balance sheet.

Question

Quizplus · Accepted Answer

Shareholders' equity is indeed calculated as the difference between a company's assets and liabilities, representing the residual interest of the company's owners in the assets of the business after all obligations have been met. This can include common stock, retained earnings, and other forms of equity.

Shareholders' Equity Is the Difference Between a Firm's Assets and Liabilities