Which term refers to the owner's claim on the assets after liabilities are settled?

The term that refers to the owner's claim on the assets after liabilities are settled is equity. Equity represents the residual interest in the assets of an entity after deducting liabilities. It can be thought of as the net worth of the business from an owner's perspective, encompassing contributions by owners (such as investments) and retained earnings or profits that have been reinvested in the business.

Equity is a fundamental concept in accounting and finance, as it provides insight into the financial health of a business and the level of ownership held by shareholders or owners. In financial statements, equity appears on the balance sheet and serves as a key indicator of a company's ability to sustain and grow its operations, remaining after all obligations are met. Understanding equity is critical for stakeholders when evaluating a company's value and making investment decisions.