Average Owner Equity is the average of the beginning and ending owner equity for an operating or calendar year. Balance Sheet is a financial statement that shows the financial condition of the business at a particular point in time. The statement lists all assets and liabilities, and the resultant owner equity. Book Value is equal to the original cost or basis of an asset minus any accumulated depreciation. This information is usually obtained from the depreciation schedule.
Cost Basis is another term for book value.
Leverage is the relationship between debt and equity. Earnings on debt must be greater than the cost of debt to have a positive impact on business growth. Market Value is the value that would be received for the business's assets if the business was liquidated on the same date the balance sheet was prepared. Statement of Owner Equity is a financial statement that reconciles the change in owner equity between the beginning and ending balance sheets. Solvency is the measure of the dollar value that would remain if all assets were converted into cash and all debts paid.