MANAGEMENT

Detailed explanation-1: -The formula for owner’s equity is: Owner’s Equity = Assets – Liabilities. Assets, liabilities and subsequently the owner’s equity can be derived from a balance sheet.

Detailed explanation-2: -Assets – Liabilities = Owner’s Equity The term “owner’s equity” is typically used for a sole proprietorship. It may also be known as shareholder’s equity or stockholder’s equity if the business is structured as an LLC or a corporation.

Detailed explanation-3: -How Is Equity Calculated? Equity is equal to total assets minus its total liabilities. These figures can all be found on a company’s balance sheet for a company. For a homeowner, equity would be the value of the home less any outstanding mortgage debt or liens.