Question

Which element of the accounting equation represents the rights of owners?

Answer 1

$\huge\mathfrak{Answer:}$

The formula for accounting equation is derived on the basic premise that the equity owners have a residual claim on the total assets of a company after subtracting all the liabilities owed by the company. This is represented by the equation: Shareholders' Equity = Assets – Liabilities.

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Answer 2

The formula for accounting equation is derived on the basic premise that the equity owners have a residual claim on the total assets of a company after subtracting all the liabilities owed by the company. This is represented by the equation: Shareholders' Equity = Assets – Liabilities.



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