Accounts Receivable (AR) Question:
Explain Why is Capital amount put in Liabilities and not in Assets?
Answer:
One of the basic convention in accounting is separate legal entity.It means the business is different from those who manage it.When i contribute capital in to my business,it is liability to my business to repay it to me.
| Previous Question | Next Question |
| Explain what is brs? | Explain what are derivatives? |