Equity, or shareholders' equity for a corporation,
A)is the residual interest of owners in the assets of an entity, after subtracting liabilities.
B)includes assets exchanged by owners in return for an ownership interest.
C)includes net assets generated by earnings activities in excess of net assets distributed to owners as dividends.
D)is reduced by repurchases by the firm of its ownership interests.
E)all of the above.

Question

Quizplus · Accepted Answer

Equity, or shareholders' equity for a corporation, is the residual interest of owners in the assets of an entity, after subtracting liabilities (A). It includes assets exchanged by owners in return for an ownership interest (B), as well as net assets generated by earnings activities in excess of net assets distributed to owners as dividends (C). Equity is reduced by repurchases by the firm of its ownership interests (D). Therefore, all of the above options are correct (E).

Equity, or Shareholders' Equity for a Corporation