What represents shareholders equity in a corporation?

Shareholders' equity in a corporation represents the net worth of the company. This figure is calculated as the difference between total assets and total liabilities. It reflects the ownership interest of shareholders in the company, indicating what is left for them after all debts and obligations have been settled. Essentially, shareholders' equity is a measure of a company's financial health and stability, as it reveals how much of the company is financed through shareholders' investments as opposed to borrowed funds.

The other options provided do not accurately define shareholders' equity. Total assets represent everything the company owns, and total liabilities denote everything the company owes, but neither of these figures alone reflects the ownership value of the shareholders. Total revenue pertains to the income generated from business activities but does not indicate the residual interests of shareholders after accounting for liabilities. Therefore, the understanding that shareholders' equity represents net worth is fundamental in assessing a company's financial position.