According to which concept the capital of the company is shown on liability side of balance sheet?

A. Going concern concept
B. Business entity concept
C. Matching concept
D. None of these

Brief facts about this MCQs:

According to the Business entity concept, the capital of the company is shown on the liability side of the balance sheet. The business entity concept states that the capital of the business is the liability of the business, therefore, it must be shown on the credit side of the balance sheet of the company.

Leave a Reply

Your email address will not be published. Required fields are marked *