What is another term for owners' equity?
A) assets
B) gross worth
C) net worth
D) liabilities

Question

Quizplus · Accepted Answer

Owners' equity represents the residual ownership interest in the assets of a company after deducting its liabilities. This is also known as net worth, hence option C is the correct answer. Option A is incorrect because assets are the resources owned by a company, not the equity of the owners. Option B is incorrect because gross worth is not a commonly used term in accounting, and it can be ambiguous. Option D is incorrect because liabilities are the debts and obligations owed by a company, not the equity of the owners.

What Is Another Term for Owners' Equity