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What does shareholders equity represent? O A fixed claim against the firms liabilities O A fixed claim against the firms t
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Answer #1

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The shareholders' equity represent a residual claim against the firm's total assets. Because shareholder equity (SE) refers to as shareholders' equity and stockholders' equity which is equal to a firm's total assets minus its total liabilities. Hence, it a corporation's owners' residual claim after debts have been paid.

Thus third option (i.e. a residual claim against the firm's total assets) is the correct answer.

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