I am in grade 11 and i am not 100% sure what owners equity is?

Question

I am in grade 11 and i am not 100% sure what owners equity is?

Answer 1

Owner's equity is the remaining interest in assets after liabilities are paid :)

Answer 2

In regard to a house? That would be the amount the house is worth minus what you owe on it. That difference is the amount of equity you have in the home.

Answer 3

EQUITY in a house (or other property) is the amount of money you would get if the house was sold.

If you own the house totally, your equity is whatever the house could be sold for. If you have a loan against the house,(called a mortgage),your equity is whatever the house can be sold for MINUS the amount of the mortgage

Answer 4

In a business it is the Total Assets minus the Total Liabilities.  

In a house it is the current market value of the house less the outstanding mortgage.

When the owner's equitiy is a positive number your doing well.  When it is a negative number it means that you owe more than your liabilities, some people call this being "upside down".

A lot of businesses operate this way because this does not take into account cash flow, or how much money your business is generating.  If you are making enough to cover your monthly expenses and pay you a salary, your still okay.  Probably more than you needed to know...

Answer 5

If its for a business class owners equity is stuff that is in danger of being taken from the owner if the small business falls through

Answer 6

If you are refering to home owners, owners equity is the amount put down on a house pluss whatever money that doesn't go to intrest with your monthy house payment.