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Continue Learning about Accounting

Why capital amount put in liabilities but not in assets?

Capital is recorded in liabilities because it represents the owner's claim on the business's assets after all obligations have been met. This equity capital is a source of financing for the company, reflecting the residual interest of the owners. In contrast, assets represent the resources owned by the business, while liabilities indicate the debts owed to external parties. Therefore, capital is classified under liabilities to show its role in financing the company's operations rather than being an owned resource.


What is contributed capital?

Capital received from investors for stock, equal to capital stock plus contributed capital. also called contributed capital. also called paid-in capital.


How do you improve ROCE revenue?

To improve Return on Capital Employed (ROCE), focus on enhancing operational efficiency and increasing revenue without disproportionately raising costs. This can be achieved by optimizing resource allocation, investing in high-margin products, and streamlining processes to reduce waste. Additionally, consider leveraging technology for better data analysis and decision-making, which can lead to more strategic investments and improved profitability. Regularly review and adjust your capital structure to ensure that capital is used effectively.


Difference between issued share capital and equity share capital?

The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class of capital


Is bullock cart a fixed capital or working capital?

fixed capital