The stockholders' claim to the assets of a business is called equity or stockholders' equity.

Question

Quizplus · Accepted Answer

This statement is true. Stockholders' equity represents the amount of assets that the company's owners would receive if all of the company's liabilities were paid off. It includes the initial investments made by stockholders, retained earnings (profits that have been kept in the business instead of paid out as dividends), and any other changes in stockholders' ownership in the company.

The Stockholders' Claim to the Assets of a Business Is