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Owner's Equity

   Also found in: Dictionary/thesaurus, Acronyms, Wikipedia 0.01 sec.
Owner's equity

Owner's Equity
An individual or company's net worth. This is calculated by taking the value of all assets and subtracting the value of all liabilities. Owner's equity is used in determining an individual's or company's creditworthiness, and can be used in determining the value of a business when its owner or shareholders want to sell. It is important to note than owner's equity includes the value of intangible assets and liabilities.


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On the other side of the balance sheet, you will find the bank's liabilities and the owner's equity in the bank.
The loan was used to refinance the existing debt and reeapitalize the owner's equity position.
General Equation for Accounting: Assets equals Liabilities plus Owner's Equity.
 
 
 
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