SUPERUSER
JF-Expert Member
- Jun 11, 2011
- 960
- 304
The most correct answer is f (owner's equity...also sometimes known as net worth)...equity means owner's entitlements to the business(i.e capital less all liabilities to the business)... you see when a person starts a business he may finance it either through equity(his own funds=equity financing) or through creditors eg by taking loans or issuing debentures and bonds(debt instruments of long term financing)....this means capital=owner's eqity(incase the owner provide all the financing)...also capital=owner's equity+liabilities(incase the financing comes from both the owner and creditors)....