Owner's equity

Also found in: Acronyms

0.06 sec.

Owner's equity

Paid-in capital plus donated capital plus retained earnings less liabilities.

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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