Please support this free service by just sharing with your friends. Select the language from the dropdown given below & click on the button (Or Enter) to get the Meaning in your language. These languages include Icelandic, Tamil, Lithuanian, Macedonian, Czech, Ukrainian, Italian, Indonesian, Chinese Simplified, Yiddish, Persian, Turkish, Telugu, Hebrew, Gujarati, Bengali, Polish, Belarusian, Danish, Hindi, Serbian, Bulgarian, German, French, Chinese Traditional, Korean, Azerbaijani, Greek, Norwegian, Romanian, Basque, Japanese, Urdu, Thai, Catalan, Albanian, Galician, Vietnamese, Swahili, Malayalam, Latin, Croatian, Swedish, Georgian, Esperanto, Dutch, Irish, Maltese, Haitian Creole, Filipino, Afrikaans, Arabic, Russian, Slovak, Latvian, Kannada, Estonian, Hungarian, Welsh, Slovenian, Spanish, Finnish, Malay, Portuguese etc. Michael Founder of Accounting-Basics-for-Students.It's a free Multilanguage dictionary with many languages around the World. In that chapter you will find the pages where we clearly define Assets, Liabilities and Owner's Equity.
= remaining assets) HOPE THIS HELPS Great explanation, thank you! Everything you wrote is good, I would just refer readers also to the chapter on Basic Accounting Concepts. IF A=L+OE, then A-L=OE, and A-OE=L A = assets = everything the business owns (what it makes and what it spends) (ALL THE LIABILITIES or debts + ALL THE EQUITY which is what's left after deducting debts from TOTAL ASSETS) L = liabilities = debt (a/p or accounts payable = money that they actually have but will be paying out to it's suppliers and other creditors for product, services, loan's already received ON ACCOUNT) (subtracting the liabilities from assets LEAVES OWNER'S EQUITY which is the amount of the TOTAL OF IT'S ASSETS if all debts are paid) OE = owner's equity = everything owned (CAPITAL = INVESTMENTS, EQUIPMENT, MERCHANDISE, INTEREST EARNED, REVENUE, PROFITS, etc. Return to the full tutorial: What is Owners Equity? Thanks for reading! Best, Michael Celender Founder of Accounting Basics for Students Related Questions & Tutorials: Are there any more synonyms that I left out? If so, please add this in a comment further below.
Okay, that's it for synonyms for owner's equity. Shareholders and stockholders are the same thing and refer to the individual owners of shares (small amounts) of a company.
There are a few more synonyms for owner's equity, usually used more when talking about a company: You see, if we swapped around the equation to make owner's equity the subject, we get the following: OWNER'S EQUITY = ASSETS - LIABILITIES And that's exactly what net asset value means. This definition actually comes from the basic accounting equation: "Net" actually means "after deducting something." And the "something" we are deducting here is liabilities. Net asset value is the value of all assets after deducting all liabilities (meaning the value of debts to external parties). Check out this question and answer where I go over the two terms and the differences between them: Is Equity and Capital the Same? In my opinion, the most common and accurate synonym for owner's equity is: net asset value. As you will see in the comments at the bottom of the page, many people believe that equity and capital are synonyms. Q: Owner's equity is also known as _?Ī: There are a few synonyms for owner's equity.
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