Question

can capital be considered as external liability? why?

Answer 1

Answer:

Answer: As per the accounting equation liabilities are equal to the difference between assets and capital. ... Example – Capital, Salaries, Accumulated profits, etc. External Liability – All obligations which a business has to pay back to external parties i.e. lenders, vendors, etc.

Answer 2

Answer:

As per the accounting equation liabilities are equal to the difference between assets and capital. ... Example – Capital, Salaries, Accumulated profits, etc. External Liability – All obligations which a business has to pay back to externalparties i.e. lenders, vendors, etc.

Hope this helps you!!!!