![]() ![]() Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation: Shareholders’ Equity = Assets - LiabilitiesĪ balance sheet should always balance. Shareholders’ equity belongs to the shareholders, whether they be private or public owners. Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. They are usually long-term obligations, such as leases, bonds payable, or loans.
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