The amount invested by the owner in the business is termed what?

The amount invested by the owner in the business is called Owner’s Equity. This term represents the owner's total investment in the company, which includes the initial capital contribution as well as any retained earnings that have been reinvested into the business. It reflects the net worth of the owner in the business and is a crucial component of the balance sheet, providing a clear picture of ownership's stake after liabilities are accounted for. Owner's Equity essentially shows what is left for the owner after all debts have been paid, indicating the financial health of the business from the owner's perspective.

In contrast, the other terms do not accurately capture the essence of ownership investment. Owner’s Liability refers to the obligations and debts the owner has, Owner’s Revenue pertains to the money generated from business operations, and Owner’s Investment, while it sounds similar, is not the standard financial term used in accounting. Thus, the correct terminology is Owner’s Equity, which reflects the investment made by the owner in the business.