Why profit is a liability and loss is an assets

Answer Posted / biswajeet biswal

we knew that capital has credit balance and we show it liabilities side of balance sheet so when our profit increases at that time our capital also increases so we show it on liabilities side of balance sheet and in case of loss it is vice versa

Is This Answer Correct ?    1 Yes 2 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

how to prepare mba finance for interview questions

2116


What do you mean Business

1809


What is Analysing

1667


hello,dear any body give me mis report format. my email :kumar_ranjeet121@yahoo.in

1551


plz send me a solved paper on SBI of clerk post

1823






What is DECR And for wt it is used?

1642


What part can management policy play in the analysis of cost behaviour?

1633


emplementation of accounting standerds in Bangladesh, developing or copieng?

1607


What is written off?

1643


What is Split And buy-back?

2229


fiscal year variant Vs posting period variant

1482


where does the closing stock appears in the trial balance?

1497


Expand-------BANT

1680


what is Exposure ?

1497


Received an order from Babu for the supply of goods Rs.200/-. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?

1458