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What else can I help you with?
Is owners capital a liability?
Yes owners capital is liability for businss towards its owners to be return back at the even of liquidation of business.
Is capital an asset or liabilities?
Capital is that amount which is invested by owner of business in business and it's the liability for business to return back to it's owner that's why it is liability.
Is paid up capital a debit or a credit account?
aid up capital is the amount invested by owners towards business and it is the liability of business to pay back so it is liability of business and as all liability accounts it has also credit balance.
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.
Retained earnings debit or credit?
Retained earnings are the profit of previous fiscal years and liability of business to return back to it's owner so it has a credit balance as of all liability accounts.
Is owners capital a liability?
Yes owners capital is liability for businss towards its owners to be return back at the even of liquidation of business.
What is capital beginning?
Beginning Capital is the amount which is bring by the owner of the company to start the business and it is the liability of the business to return back that amount as well as any profit earned by business to it's owner at the time of dissolution of business.
Is capital an asset or liabilities?
Capital is that amount which is invested by owner of business in business and it's the liability for business to return back to it's owner that's why it is liability.
Is paid up capital a debit or a credit account?
aid up capital is the amount invested by owners towards business and it is the liability of business to pay back so it is liability of business and as all liability accounts it has also credit balance.
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.
Retained earnings debit or credit?
Retained earnings are the profit of previous fiscal years and liability of business to return back to it's owner so it has a credit balance as of all liability accounts.
Is reserves in a balance sheet a current liability?
No reserves s part of the capital of the company. Reserves are funds help back by the company to do other things in the furture. It is not a current liability.
What is capital profit?
An operating business may be able to invest its money which makes it as the profits back in the business.
Why is depreciation always positive on a cash flow statement?
depreciation is a source of cash. because we charge depreciation in profit and loss but we added back in cash flow. remember one thing that capital expenditure= amount of depreciation
Your capital is your major asset and so should be shownas an asset on the balance sheet?
It is the basic concept of accounting that business is a separate entity from it's owner. So when owner invest capital in business its now the liability of the business to return back that amount of capital to owner of business at the time of liquidation of the company that's why it is not asset but liability of the company and shown under liability side.
Why depreciation is added to profit?
Depreciation is an expense and like all other expenses which causes the reduction in profit depreciation is also cause of reduction of profit as formula shows below:Profit = Revenue - expenses
Why capital is not an asset?
Capital is not an asset for business rather it is liability for business as this is the amount the owner who is separate from it's business invested in business and business Is requires to return it back to it's owner at the time of liquidation.
