Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?
A. Business entity concept
B. Money measurement concept
C. Cost concept
D. Going concern concept
Answer: Option A
Solution(By Examveda Team)
Based on Business entity concept, share capital account shown on the liability side of a balance sheet. The business entity concept also explains why owners' equity appears on the liability side of a balance sheet (i.e. credit side).Join The Discussion
Comments ( 1 )
Related Questions on Accounting
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D. All of the above
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Reference:G R Bhatla publication Pvt Ltd
Meerut ( u.p)
Written by : kavita gupta &vinit misra
Lesson : 2. Page: 15