Guruji Notes

In  accounting  and  finance ,  equity  is the difference between the value of the assets / interest  and the cost of the liabilities  of something owned. For example, if someone owns a car worth $15,000 but owes $5,000 on that car, the car represents $10,000 equity. Equity can be  negative  if liability exceeds assets. In an accounting context,  shareholders' equity  (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the equity of a company as divided among individual  shareholders  of  common  or preferred stock . Accounting shareholders are the cheapest risk bearers as they deal with the public. [1] Negative shareholders' equity is often referred to as a (positive)  shareholders' deficit . For the purposes of  liquidation  during bankruptcy ,  ownership equity  is the portion of a business's equity which remains for the owners after all ...