Other terms are used to denote owners’ equity, including shareholders’ equity, stockholders’ equity, net assets, equity, net worth, net book value, and partners’ capital.
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3.2. Accounting Equations llustrated by the slightly rearranged balance sheet equation, roughly equivalent to the structure commonly seen in the balance sheets of UK companies:
Equation (1b)
Assets – Liabilities = Owners’ equity
<span>Other terms are used to denote owners’ equity, including shareholders’ equity, stockholders’ equity, net assets, equity, net worth, net book value, and partners’ capital. The exact titles depend upon the type of entity, but the equation remains the same. Owners’ equity at a given date can be further classified by its origin: capital contributed by owners
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