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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
What does GAAP stand for in Accounting?
Explain the need for GAAP for accounting.
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
According to this principle, cost of a particular period should be charged from the revenue of same period only.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
Explain Matching Concept of GAAP.
Explain matching principle of accounting.
Explain the complete disclosure principle.
Explain the revenue principle.
Explain the expense principle.
