Final answer:
False. Stockholders' equity and owners' equity are not the same.
Step-by-step explanation:
False. Stockholders' equity and owners' equity are not the same.
Stockholders' equity represents the ownership interest in a corporation held by the shareholders. It is calculated by subtracting the total liabilities from the total assets of a company. Stockholders' equity includes common stock, retained earnings, and additional paid-in capital.
On the other hand, owners' equity represents the ownership interest in a sole proprietorship or partnership. It is calculated by subtracting the total liabilities from the total assets of the business.
In summary, stockholders' equity is specific to corporations, while owners' equity is applicable to sole proprietorships and partnerships.