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1. Capital introduced in business is liability of business towards it's owner to payback, so if owner's introduce more capital it increases the liability of business that's why it is also liability.
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Is additional paid in capital an asset?
Additional paid in capital is an asset to a business. If this type of capital has to be paid back to a financial institution, then it will also become an accounts payable or liability.
Paid-in capital a asset or liability?
Neither, it is equity
Is the cash dividend paid asset or liability?
is an asset
Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
Is additional paid in capital an asset?
Additional paid in capital is an asset to a business. If this type of capital has to be paid back to a financial institution, then it will also become an accounts payable or liability.
Paid-in capital a asset or liability?
Neither, it is equity
Is the cash dividend paid asset or liability?
is an asset
Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
Is income tax a current liability or an expense?
Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.
Is tax paid on purchases an asset or liability?
Tax paid on purchases are considered a liability. Anything paid to another is considered a liability for businesses because they are spending money.
Interest paid on loan to buy an asset-asset or liability or expense?
Loan acquired to buy an asset is a liability of business so interest incurred on that loan is also part of that loan and that's why it is also the liability of business.
Where does additional paid in capital belong in the elements of financial statements?
Additional paid in capital is also part of paid in capital of business and shown as an addition to already exists paid in capital of business.
What are total liabilities?
is paid in capital a liability
What is capitalized lease obligations?
Capitalized lease obligations refer to lease agreements where the lessee records the leased asset as a capital lease on their financial statements. This means the lessee treats the leased asset as if it were purchased with a loan, and includes the lease payments as both an asset and a liability on their balance sheet.
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What type of account is paid-in capital in excess of par?
additional paid in capital
