English, asked by ashuashu1323, 9 months ago

Why peopriater's capital account is aliability for the business?

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Answered by Anonymous
8

When you raise funds for your business through debt and equity, you have to pay them back with interest or premiums or through shares and dividends. That is why It is a liability. ... In the end capital increases value of the firm, but it needs to be repaid through profits.

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