Owners Equity is the residual value of assets minus liabilities.

Is it possible for owner's equity to be a negative amount?

Owner's equit is also viewed as a RESIDUAL claim on the business assets because liabilities have a higher . Mathematically,the amount of owner's quity is the amount of assets minus the amount of liabilities .since the amounts must follow the cost principle(and others) the amount of owner's equity does not represent the current fair market value of the business .

what is equity ?

What is owners equity?

tangible assets

Owner's equity can increase if there are no drawings and if the owner is pumping in more cash or assets into the business or if the profits are taken as top up to working capital

What is owners equity?

Car purchase will reduce equity.

Owner's equity is viewed as a residual claim on the business assets because liabilities have a higher claim.