Fresh capital introduction will increase
A. Assets and Liabilities
B. Assets and Equity
C. Liabilities and equity and bank balance
D. Capital and Liabilities
Answer: Option B
Solution(By Examveda Team)
Fresh capital introduction will increase Assets and Equity.Capital will increase the Equity.
Cash at Bank will increase the Asset.
This Question Belongs to Commerce >> Accounting
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Comments ( 4 )
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Option wrong
Introduction of capital leads to increase in equity capital and assets right but it even increase liability for business. Suppose I started business with 10L other liability are 10L total=20L and total assets =20L now introduction of capital 5L leads increase in equity by 5L (15L) &assets by 5L (25L) where now liability will also increase 15L+10L =25L right
sir explain this question why not capital increased
how?