martina invested her savings into her business when she started it. later she added more capital, and she has kept some of her profits. together, these are known as a. owners' equity. b. accrued expenses. c. owners' long-term debt. d. debt capital.

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Josh2083 Josh2083

21-10-2022
Business

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martina invested her savings into her business when she started it. later she added more capital, and she has kept some of her profits. together, these are known as a. owners' equity. b. accrued expenses. c. owners' long-term debt. d. debt capital.

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abhinavjh321 abhinavjh321 · Answer 1 · 2022-10-25T05:38:00-04:00

Martina invested her savings into her business when she started it. later she added more capital, and she has kept some of her profits. together, these are known as owners' equity.

Owner's equity, also known as net assets, is the owners' claim to the business's assets after all liabilities have been settled. In other words, the surplus funds would be regarded as owner's equity if the company's assets were liquidated to pay creditors. Owner's equity is a general phrase for an equity account, however sole proprietorships are the ones who utilize it the most frequently. While corporations refer to shareholders' equity, partnerships often refer to their equity accounts as members' equity.

The owner's equity formula is made up of a number of different elements. Owner's capital is the long-term account that keeps track of the total balance of withdrawals, contributions, income, and losses. The next few factors will determine whether this balance is good or negative.

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