Accountancy, asked by ekanki6517, 1 year ago

Why do we add share capital reserves and surplus long term borrowings to get total asset?

Answers

Answered by MiSSiLLuSioN
0
Hi dear ☺

Here's the answer ⤵

Capital Reserves, which usually arise as a result of issuing stock in excess of par value. Retained earnings, which arise as a result of past profitable operations.

In simplified terms, retained earnings are net profits that have not been distributed to shareholders as dividends.

Hope it helps ✌
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