Owners’ Equity

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Owners’ Equity, often referred to as owners equity def, represents the residual interest in the assets of an entity after deducting liabilities. It is a fundamental component of the balance sheet, reflecting the net worth attributable to the owners or shareholders. This equity can include common stock, retained earnings, and additional paid-in capital. Owners’ Equity is crucial for assessing the financial health and stability of a business.

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