What is the excess of a company's assets over its liabilities called?

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1263107

2026-03-27 13:31

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The excess of a company's assets over its liabilities is called equity, often referred to as shareholders' equity or owner’s equity. It represents the net worth of the company and indicates the residual interest that owners have in the company after all liabilities have been settled. Equity can include common stock, preferred stock, retained earnings, and additional paid-in capital.

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