Finance Formulas / July 6, 2018 / Alyvia French
Stockholders' equity is the amount of the company that is "owned" by investors. A good way to think of stockholders' equity is the amount of money that stockholders would theoretically get if the company decided to close its doors, sell its assets, and pay all of its debts. This includes preferred equity as well as common stockholders' equity.
Accounts receivable, bills to customers that have yet to be paid, are considered current assets as long as they can be expected to be paid within a year. If a business has been making sales by offering loose credit terms, a chunk of its accounts receivables might not come due for a longer period of time. It is also possible that some accounts will never be paid in full.
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