Home » Financial Terms Dictionary » Owners' Equity

Definition Of Owners' Equity:

Capital employed in a firm, computed by deducting the book value of the liabilities from the book value of the assets.
Whereas the term 'assets' universally means 'total assets,' some experts propose that the term 'liabilities' should not include long-term liabilities because (since they are incurred in funding the operations of the firm) they are part of the capital employed. Being based on the historical value of the assets, it rarely reflects the current (market) value of the funds invested. Also called net assets, net worth, shareholders' equity, or shareholders' funds.

Other Definition Of Financial Terms:

Owners' Withdrawals
Ownership Cost
Package Clause
Package Deal
Packing
Packing List

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