Question

capital is :
a)internal liability
b)external liability
c)both
d)non of these

Answer 1

Answer:

Firstly, Internal Liabilities means the liability of business towards it's owners, i.e. balance in the capital account. External Liabilities means what a business owes to outsiders like bank loan , creditors and debentures etc.

so capital is internal liability

Explanation:

Answer 2

Answer:

a) internal liability is the correct answer.