What Is Equity In Accounting

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What Is Equity In Accounting

Answer: Equity in accounting is like your share in a company. It’s what’s left when you subtract all the company’s debts from what it owns. This leftover part belongs to the shareholders. Equity includes things like the company’s stock, the money it has saved up (retained earnings), and the extra cash people have put into the company. It shows how well the company is doing and how much the shareholders own. So, it’s kind of like your piece of the company’s financial pie after all the bills are paid.

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