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Definition - Owners' Equity, Also Known as Net Worth


Definition: Owners' Equity is the combined investments of the owner(s) and the accumulation of profit or losses for the business since it began.

Owner's Equity (Net Worth) is expressed in the following accounting formula:

Net Worth = Assets - Liabilities
Also Known As: Also called, Net Worth, Owner's Capital, Net Assets, Shareholders' Equity, or Shareholders' Funds.
Alternate Spellings: Owner's Equity

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