Question:
What is the other name for shareholder's funds?
What is the other name for shareholder's funds?
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Shareholder's Funds and Net Worth represent the same balance sheet value: the total equity capital plus reserves, minus any accumulated losses.
Updated On: Jun 22, 2026
- Gross profit
- Net loss
- Net worth
- Loan fund
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The Correct Option is C
Solution and Explanation
Step 1: Defining Shareholder’s Funds:
Shareholder's funds represent the owners' residual interest in the assets of a company after deducting all liabilities.
Step 2: Calculating Book Equity:
This balance sheet value is calculated using the following formula: $$\text{Shareholder's Funds} = \text{Paid-up Share Capital} + \text{Reserves \& Surplus} - \text{Accumulated Losses}$$
Step 3: Identifying the Term:
This formula calculates the net book value of the company’s equity, which is commonly referred to as the company's Net worth (C).
Shareholder's funds represent the owners' residual interest in the assets of a company after deducting all liabilities.
Step 2: Calculating Book Equity:
This balance sheet value is calculated using the following formula: $$\text{Shareholder's Funds} = \text{Paid-up Share Capital} + \text{Reserves \& Surplus} - \text{Accumulated Losses}$$
Step 3: Identifying the Term:
This formula calculates the net book value of the company’s equity, which is commonly referred to as the company's Net worth (C).
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