Owners' equity = assets minus liabilities.

Name: Owners' equity = assets minus liabilities.
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This equation is known as the accounting equation and is the foundation for measuring a company's financial position. It states that the owners' equity, or the amount of money the owners have invested in the company, is equal to the assets (what the company owns) minus the liabilities (what the company owes).

Owners' Equity = Assets Minus Liabilities