RESIDUAL EQUITY THEORY Definition

Bookmark and Share

RESIDUAL EQUITY THEORY is the theory that common stockholders are considered to be the real owners of the business, i.e., Assets - Liabilities - Preferred Stock = Common Stock.

Learn new Accounting Terms

CRUT is an acronym for Charitable Remainder Unitrust.

ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.