हिंदी

State whether the following statement is True or False. A company is an artificial person.

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प्रश्न

State whether the following statement is True or False.

A company is an artificial person.

State whether the following statement is true.

A company is an artificial person.

सत्य या असत्य
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उत्तर

This statement is true.

Explanation:

Under accounting rules, a company is considered an artificial person because it has a separate legal identity from its owners, known as the Business Entity Principle. This means all financial transactions are recorded from the company’s perspective, not the owner’s personal view. Because the company acts as an independent person, it can own assets, take loans, and enter into contracts under its own name. Consequently, the money invested by the owner is treated as a liability (Capital) that the company owes back to them.
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Formation of a Company
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 3: Formation of a company - Exercise Q.1 [पृष्ठ ४५]

APPEARS IN

बालभारती Secretarial Practice [English] Standard 11 Maharashtra State Board
अध्याय 3 Formation of a company
Exercise Q.1 | Q 4.01 | पृष्ठ ४५
एनसीईआरटी Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
अध्याय 1 Accounting for Share Capital
Intext questions | Q (a) | पृष्ठ ७

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