Owner’s equity is the residual interest in the assets of a business after deducting liabilities. It represents the owner’s claim on the company and includes capital invested plus retained earnings. It increases with profits and decreases with losses or withdrawals. For corporations, it’s referred to as shareholders’ equity.
Off-balance sheet items are assets or liabilities not recorded directly on the balance sheet but still impact financial health. Examples…
An operating lease is a rental agreement where the lessee uses an asset without owning it. It doesn’t appear on…
Obsolescence occurs when an asset becomes outdated or no longer useful due to new technology, market changes, or wear and…
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