Depending on the form of the organization, owners’ equity may be referred to as “partners’ capital” or “shareholders’ equity.”
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3.1.1. Balance Sheet balance to the combined total amounts of liabilities and owners’ equity. Alternatively, the equation may be rearranged as follows: Assets – Liabilities = Owners’ equity. This formulation emphasizes the residual claim aspect of owners’ equity. <span>Depending on the form of the organization, owners’ equity may be referred to as “partners’ capital” or “shareholders’ equity.”
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