net profit is liability of the business because it is reward for the owner

why net profit shown liabilities side in balance sheet

Question Posted / wangda.tenzin

Answer Posted / wangda.tenzin

net profit is liability of the business because it is reward
for the owner for their capital investment

Is This Answer Correct ?

1 Yes

1 No

Please Help Members By Posting Answers For Below Questions

Give ONE reason for Balance Sheet to be out of balance

2060

What are accounting entities?

1086

What is the formula for acid test ratio in accounting?

1089

Tell me do you think accounting standards are mandatory and why?

1213

i have pay to 250000 excise duty so i ask to all how can maintain entry in tally ?

1780

how to create salary and pf statement in excel sheet?

2135

What are the AP accounting entries for EXPENSE ITEM VS Inventory Item in oracle ERP

3258

Is it mandatory for the employees staff of a School, if so give details

2153

What is the important of computerized accounting to manual?

1189

Please give me as example of service tax & Vat Posting through Tally.

2207

Tell me in accounting, how do you define premises?

1184

on 02/05/2013 issued a cheque to third eye ltd of Rs.14000/- in full and final settlement against the due on amount

1883

Differentiate accounting and auditing?

1197

Explain financial accounting. What are its characteristic features?

1179

How many invoices on average do you handle on a weekly/monthly basis?

1309