An owner's financial interest in the business is called capital or:

• A. Revenue
• B. Owner's equity
• C. Assets
• D. Liabilities

Answer: (B)

Verified step by step guidance

1. Understand the concept of owner's financial interest in the business. This is the portion of the business's assets that the owner has a claim to after all liabilities are settled.
2. Learn the term 'Owner's Equity,' which represents the owner's financial interest in the business. It is calculated as: $\mathrm{Assets}-\mathrm{Liabilities}$.
3. Differentiate between related terms: Revenue refers to the income generated from business operations, Assets are resources owned by the business, and Liabilities are obligations owed to external parties.
4. Recognize that Owner's Equity is a fundamental component of the accounting equation: $\mathrm{Assets}=\mathrm{Liabilities}+\mathrm{Owner\text{'}s\; Equity}$.
5. Apply this understanding to identify that the correct answer to the question is 'Owner's Equity,' as it directly represents the owner's financial interest in the business.