In accounting, owner's equity can be described as what?

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities. It essentially reflects the net worth of the owner in the business and can come from various sources, including investments by the owner and retained earnings over time.

Investments that will fund future acquisitions align closely with the concept of owner’s equity, as they can represent the owner's stake in the firm which may be utilized for growth, expansion, or new asset acquisition in the business. This indicates a forward-looking potential of the equity that can facilitate future gains or operations.

In contrast, other options do not accurately reflect the definition of owner's equity. Debts owed to creditors pertain to liabilities, not equity. Short-term commitments are typically obligations that the firm must settle within a year, which also fall under liabilities. Fixed assets may represent investments made by the business, but describing them as "fixed assets that cannot be easily liquidated" does not encapsulate the notion of owner’s equity, which is more concerned with the difference between total assets and total liabilities rather than focusing on asset liquidity.