Question

can capital be considered as external libility​

Answer 1

Answer:

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. are termed as external liabilities. Example – Borrowings, Creditors, Taxes, Overdraft, etc.

Answer 2

Answer:

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. are termed as external liabilities. Example – Borrowings, Creditors, Taxes, Overdraft, etc.