What exactly is equity?

Open in App

Solution

Equity refers to the total amount of return that the business owners get after providing for all liabilities, paying off any debts and loans, providing for provisions, etc. equity can be calculated by subtracting total assets from total liabilities.

Also read:

Debt to Equity Ratio

What Is Equity?

What Are Equity Shares?

Suggest Corrections

Similar questions

what is the meaning of 'equity cult'?

What is meant by the cost of equity?

What is meant by equity shares? Briefly explain its merits.

What are equity shares ? Discuss its various features.

Join BYJU'S Learning Program