Definition, Meaning & Synonyms
equity-account
Noun
ˈɛkwɪti əˈkaʊnt
Definition
An equity account refers to a financial account that represents the ownership interest in a business or the net assets after liabilities have been deducted.
Examples
- John transferred his investment into an equity account with the firm.
- The company’s equity account showed significant growth over the last fiscal year.
- Investors often analyze equity accounts to assess company performance.
Meaning
It indicates the residual interest in the assets of the entity after deducting liabilities, also showing how much of the company’s assets are owned outright by shareholders.
Synonyms
- Ownership account
- Shareholders’ equity
- Capital account
