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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).

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Comments ( 1 )

  1. Mohd Mudassir
    Mohd Mudassir :
    1 year ago

    Reference:G R Bhatla publication Pvt Ltd
    Meerut ( u.p)
    Written by : kavita gupta &vinit misra
    Lesson : 2. Page: 15

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