Owner’s equity is the amount left after subtracting all the company’s liabilities from the assets.
What Is Owner’s Equity in Accounting?
Think of owner’s equity like a leftover pie after everyone you owe has taken their slice—it’s what’s truly yours as the owner. Unlike a company’s fair market value, owner’s equity doesn’t reflect a company’s overall worth. Instead, it shows how much capital the owners have invested in the business and how much of the business’s…