Question

. Classify the following accounts under Modern approach and traditional approach.
a. Motor vehicles.
b. Salaries.
c. Commission received.
d. Trademarks.
e. Due to Sameera.
Example: Buildings.
S. No Name of the Account Modern Approach Traditional Approach
1 Buildings A/c Asset A/c Real A/c

Answer 1

Answer:

In finance and accounting, equity is the value attributable to the owners of a business. The book value of equity is calculated as the difference between assets and liabilities on the company’s balance sheet, while the market value of equity is based on the current share price (if public) or a value that is determined by investors or valuation professionals.