Answer Posted / giri
By definition, Liability is something which
someone/somebody has some obligation to pay to someone.
From companies point of view, the profit earned by company
must be distributed among the shareholders at the time of
liquidation. So, It is certainly liability.
It cannot be treated as an asset because asset is something
which can give future cashflow or reduce the cashflow in
future and profit cannot do both of those.
| Is This Answer Correct ? | 4 Yes | 0 No |
Post New Answer View All Answers
What are the various steps government take to curb inflation?
What Is Non-traditional Options?
What are the skills required to be a bill collector?
What are the different types of tools provided to the investors to keep track of the activities going on in the stock market?
What are the disadvantages of equity shares?
What do you know about RBI? Tell some of its functions?
What is the current price/level of: the FTSE 100, S&P 500, the Bank of England base rate, LIBOR, a barrel of Brent Crude, an ounce of gold, the US dollar, and the euro?
What is the meaning of goodwill? How is it calculated?
What are the Exotic birds ( Since it was mentioned in hobbies)?
WHY ARE YOUR ACADS LOW?(IF THEY ARE LOW)
What are the two most basics financial statements prepared by the companies?
What idea do you frame of insurance sector in India?
What is Balance of merchandise trade?
Accounts payable questions
How can a Business firm achive growth Internally and Externally?
