Multiple Choice QuestionThe value of what stockholders own in a firm minus any liabilities is called ______.Multiple choice question.operating incomeowners' equitydeferred incomeretained earnings
Question
Multiple Choice QuestionThe value of what stockholders own in a firm minus any liabilities is called ______.Multiple choice question.operating incomeowners' equitydeferred incomeretained earnings
Solution
The correct answer is owners' equity. This term refers to the amount of an entity that belongs to its owners after deducting liabilities. In other words, it's what the shareholders would receive if all the company's assets were sold and all its debts paid.
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