Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 14 - No. 32)
What is the definition of 'equity' in the accounting equation?
The total amount of money a business owns.
The value of the business's assets.
The owner's stake in the business.
The amount of money owed to creditors.
Explanation
Equity represents the owner's investment and accumulated earnings.
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