Which of the following describes equity in accounting?

Equity in accounting represents the ownership interest in a company's assets after all liabilities have been deducted. This concept is fundamental to the accounting equation: Assets = Liabilities + Equity. When you look at a company's balance sheet, equity reflects the net worth of the business; that is, what remains for the owners and shareholders once all external claims (liabilities) have been settled. Therefore, option A accurately captures this definition, highlighting that equity is indeed the residual interest in the assets after accounting for liabilities.

The other options describe different aspects of financial accounts or concepts unrelated to equity. The total amount of liabilities refers to what a company owes, which does not provide insights into ownership or net worth. The sum of all revenues generated gives a picture of income but not equity itself, as equity accounts for costs and expenses as well. Lastly, the physical cash held by a company is simply a portion of its assets and does not encompass the broader concept of equity, which involves all assets minus all liabilities. Thus, option A is the clear and correct description of equity in accounting.