What determines the value of owners' equity?

The value of owners' equity is fundamentally determined by calculating the remaining amount after deducting total liabilities from total assets. This is based on the accounting equation: Assets = Liabilities + Owners' Equity. Rearranging this equation shows that Owners' Equity equals Assets minus Liabilities. This calculation reflects the net worth of the business attributable to its owners after all obligations have been met, making it the accurate representation of owners' equity.

The other options do not capture the overall concept of owners' equity. Dividends paid only represent a distribution of profits and do not directly affect owners' equity in the way that the balance sheet calculations do. Similarly, the amount invested by shareholders is only one component of owners' equity and does not account for accumulated profits or losses. Lastly, overall revenue generated by the business influences profits but does not directly indicate ownership value unless it leads to changes in assets or equity after expenses and distributions are considered. Therefore, option A provides a comprehensive and accurate view of how owners’ equity is determined.