Why profit is a liability and loss is an assets
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Answer Posted / jagadish
profit is an income to the company it has to distribute to
the shareholder becoz they are the owners of the company so
it is treated as a liabilty and is shown in the liabilty
side of the balance sheet, whereas loss is an asset becoz it
has to recover by the company so it is treated as an asset.
| Is This Answer Correct ? | 4 Yes | 2 No |
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