Concept:The net worth of a business is the amount by which its assets exceed its liabilities.
This amount is the owner’s financial interest in the business.
Explanation:In accounting, the owner’s claim is shown by the equation:
Assets−Liabilities=CapitalIf all liabilities are paid off, the remaining value belongs to the owner.
This remaining value is called capital or owner’s equity.
It represents what the business is worth to the owner.
A premium is an amount paid above the normal value.
A bonus is an extra benefit or reward.
A provision is an amount kept aside for expected expenses or losses.
None of these terms matches the definition of assets minus liabilities.
Therefore, the correct answer is capital.
Answer:A. capital