Question

what is credit in nature?​

Answer 1

Answer:

Since the liabilities of the company are the money owed by company, and it has to be paid back, it is a credit in nature. Similarly, the equity of the company is the money of shareholders so it also has to be paid back due to separate legal entity concept

Answer 2

Answer:

Since the liabilities of the company are the money owed by company, and it has to be paid back, it is a credit in nature. Similarly, the equity of the company is the money of shareholders so it also has to be paid back due to separate legal entity concept.