Owners' equity is the dollar value that remains after the total liabilities of a business are subtracted from its total assets. a. true b. false

The statement is true. Owners' equity is the dollar value that remains after the total liabilities of a business are subtracted from its total assets.

Further Explanation:

Equity Capital:

Owner’s equity is also known as equity capital. Equity capital is raised by the issue of equity shares. The equity shares can, to the existing shareholder, friends, relatives, and the general public. The shares are issued to the public through Initial Public Offering (IPO). The equity shareholders have the right to vote and are entitled to receive a dividend. They receive dividend only when there are adequate profits. When the shares are issued to the existing shareholder, it is known as the right issue. The right share holder can denounce the right to purchase shares to the other person. When the shares are issued to the particular class of shareholder it is known as the preferential issue.

Balance sheet of the company contains two main parts which is assets and liabilities. Liabilities also have two parts capital and liabilities. Capital is also known as owner’s equity. The amount of owners’ equity can be computed by the difference between total assets and the total liabilities.  

Learn more:

1.Learn more about equity capital

2.Learn more about earnings per share

3.Learn more about property tax

Answer details:

Grade: Middle School

Subject: Taxation

Chapter: Equity capital

Keywords:owners’ equity, the dollar value, remains, after, total liabilities, business, subtracted, total assets, shareholder, initial public offering, dividend, right issue, shareholder, adequate profits.  

answer; consideration;