BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Owner’s equity can be calculated by summing all the business assets (property, plant and equipment, inventory, retained earnings, and capital goods) and deducting all the liabilities (debts, wages, and salaries, loans, creditors).

Detailed explanation-2: -Owner’s Equity = Assets – Liabilities. Assets, liabilities and subsequently the owner’s equity can be derived from a balance sheet.

Detailed explanation-3: -Four components that are included in the shareholders’ equity calculation are outstanding shares, additional paid-in capital, retained earnings, and treasury stock. If shareholders’ equity is positive, a company has enough assets to pay its liabilities; if it’s negative, a company’s liabilities surpass its assets.

Detailed explanation-4: -Capital is a subcategory of equity, which includes other assets such as treasury shares and property.