Equity

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Equity

Assets- liabilities.

It is the amount of the business you actually own after all the creditors are paid off. John’s business has one asset, a $200,000 house with a $150,000 mortgage. If John sold the house( his asset) and paid the bank the $150,000 he owes them (his liability) he would have $50,000 left for himself. The $50,000 is his equity.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.

Expected or Past Undergrad Graduation Date*

When Do You Plan to Start Studying?