what is credit in nature?
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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
Answered by
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.
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