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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
Explain the Business Entity Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
Define the term GAAP.
GAAP stands for ______.
______ is the language of business.
This concept assumes that the business will continue to exist for a long time in the future.
"Firms live forever." Explain with reference to the concept of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain The Dual Aspect Principle.
