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प्रश्न
The capital provided by the owner is a liability of the firm. Answer with reference to the concept of Accounting.
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उत्तर
It depends on the 'business entity concept.' According to this concept, a business and a businessperson are treated as two different identities and hence the capital contributed by the owner of the business is treated as liability from the point of view of the business.
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संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the Business Entity Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
According to this principle, cost of a particular period should be charged from the revenue of same period only.
According to Business Entity Concept:
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
"Every transaction affects at least three accounts." Comment.
Explain The Dual Aspect Principle.
Explain the principle of consistency.
