The financial interest of the owner in the assets of a business, after deducting liabilities, is known as what?

The term used to describe the financial interest of the owner in the assets of a business, after deducting liabilities, is owner's equity. Owner's equity represents the residual interest in the assets of the business after all liabilities have been settled. It reflects the net worth of the business from the owner's perspective and is a key component in assessing the overall financial health of that business.

This concept is crucial because it shows how much the owner truly "owns" in the business, which can be important for various accounting and financial reporting purposes. Understanding this distinction allows individuals to evaluate potential investments, business performance, and overall financial stability.

In contrast, business equity generally refers to the value of the owner's stake, but it is not as specific as owner's equity for this context. Net income represents profitability over a period and reflects the company's earnings after expenses; it does not pertain directly to the cumulative value of the owner's stake in the business. Gross revenue refers to the total income generated by the business before any expenses are deducted, and therefore does not reflect the owner's financial interest after liabilities.