Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 25 - No. 19)
In the accounting equation, what does 'equity' represent?
The total assets of the business.
The claims of the creditors against the business.
The owner's stake in the business.
The value of the goods sold by the business.
Explanation
Equity represents the owner's or owners' claims on the assets of the business.
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