Capital or Equity

The fund invested by the owner in the business or the net amount claimable by the owner from the business is known as the Capital or Owner’s Equity or Net Worth.

Formula: Owner’s Equity = Assets - Liabilities

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Related Terms

• Credit
• Cost of Goods Sold
• Closing Balance
• Contract
• Cash Basis Accounting
• Chart of Accounts (COA)
• Credit Note
• Cash Flow
• Contra Entries
• Consignment
• Current Ratio
• Current Asset