can capital be considered as external liability? why?
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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.
Answered by
1
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!!!!
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