Financial Equity: Difference between revisions

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[[Financial Equity]] is the long term investments of the business including:
[[Financial Equity]] or ''Shareholders' Equity'' or ''Net Assets'' is the value of the business to its owners.  It is sum of the [[Financial Assets]] less the [[Financial Liabilities]] and is the debt owed to owners.


*
In a [[Balance Sheet Report]], [[Financial Equity]] is generally split into:
* Retained earnings
** Re investments into the business
** Pay off debt
** Dividends.

Latest revision as of 10:47, 21 April 2017

Financial Equity or Shareholders' Equity or Net Assets is the value of the business to its owners. It is sum of the Financial Assets less the Financial Liabilities and is the debt owed to owners.

In a Balance Sheet Report, Financial Equity is generally split into:

  • Retained earnings
    • Re investments into the business
    • Pay off debt
    • Dividends.