owners’ equity.The aggregate of the owners’ financial interests in the assets of a business entity; the capital contributed by the owners plus any retained earnings. • Owners’ equity is calculated as the difference in value between a business entity’s assets and its liabilities. — Also termed (in a corporation) shareholders’ equity; stockholders’ equity. [Cases: Corporations
182.1(2). C.J.S. Corporations § 340.]
“Owner’s equity is the residual claim of the owners of the business on its assets after recognition of the liabilities of the business. Owner’s equity represents the amounts contributed by the owners to the business, plus the accumulated income of the business since its formation, less any amounts that have been distributed to the owners.” Charles H. Meyer, Accounting and Finance for Lawyers in a Nutshell 4 (1995).
[Blacks Law 8th]