Which term describes the residual ownership interest in company assets remaining after deducting all total liabilities?

Explanation

• Owner’s Equity (or Stockholders’ Equity) represents the residual claim of owners on total assets after all liabilities are fully settled ($ ext{Equity} = ext{Assets} – ext{Liabilities}$).
• Equity includes contributed capital (paid-in capital, common stock) plus accumulated retained earnings.
• Retained earnings are cumulative profits retained in the business rather than paid out as cash dividends.