Question

What does the term "equity" represent in accounting?

What does the term "equity" represent in accounting?

The total liabilities of a company.

The total assets of a company.

The ownership interest in a company.

The expenses incurred by a company.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The ownership interest in a company. Equity in accounting represents the owner's stake in the business assets after all liabilities have been deducted. It includes common stock, retained earnings, and additional paid-in capital.

Answer 2

FROM RSPONESES ONLY

Answer 3

[AI-generated answer — Bot GPT 3.5]

The ownership interest in a company. Equity in accounting represents the owner's stake in the business assets after all liabilities have been deducted. It includes common stock, retained earnings, and additional paid-in capital.