Mcgraw hill connect financial accounting answers chapter 1 homework

Answer:

Stockholders’ Equity is the amount of money that the owners are entitled to. The amount of money that a company’s owners have put into it is its shareholders’ equity. This includes both the money they put in themselves and the money the company has made and put back into the business since it started. Also, shareholders’ equity is not the same as the company’s assets. On a balance sheet, assets are what a business owns, and they are always equal to liabilities plus shareholders’ equity. The shareholders’ equity of a company is one of the first things bankers and other analysts look at to figure out how healthy and stable its finances are.