Shareholder Equity: Definition & Formula


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question 1 of 3

What is shareholder equity?

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1. What is the difference between long-term liabilities and short-term liabilities?

2. What is the formula for shareholder equity?

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About This Quiz & Worksheet

Shareholder equity refers to the value of a business after all long-term and short-term liabilities have been taken into account, and this quiz/worksheet combo will help you ensure that you understand this concept and know how to calculate shareholder equity. The practice questions on the quiz will test you on topics such as the definition of shareholder equity, the basic accounting model for assets and the formula for shareholder equity.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • The definition of shareholder equity
  • The difference between long- and short-term liabilities
  • Identifying the basic accounting model
  • Identifying the formula for shareholder equity
  • Your ability to calculate shareholder equity

Skills Practiced

This quiz and worksheet will allow you to test your skills in the following areas:

  • Reading comprehension - ensure that you draw the most important information on shareholder equity from the related lesson on this topic
  • Problem solving - use your acquired knowledge to solve practice problems involving the calculation of shareholder equity
  • Defining key concepts - ensure that you can accurately define main phrases, such as shareholder equity and the formulas for assets and equity
  • Distinguishing differences - compare and contrast topics from the related lesson, such as short-term and long-term liabilities

Additional Learning

To learn more about shareholder equity, review the accompanying lesson on this topic. This lesson covers the following objectives:

  • Define shareholder equity
  • Discuss the formulas in the basic accounting model
  • Differentiate between long- and short-term liabilities
  • Define the formula for shareholder equity
  • Examine an example of calculating shareholder equity