Why is capital usually shown in a statement of financial position as a liability?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cambridge International AS And A Level Accounting

ISBN: 9781444181432

1st Edition

Authors: Ian Harrison

See More Books

Question Posted: Aug 23, 2023 01:10 PM

See More Questions

PENCOMPs statement of financial position at December 31, 2010, is as follows. Additional information concerning PENCOMPs defined benefit pension plan is as follows. Defined benefit obligation at...
Hazzizzi Ltd Trial balance as at March 31, 2023 Trade receivables 22,800,000 Trade payables 6,100,000 Provision for bad debt 7,600,000 Bank 2,100,000 Cash in hand 928,000 Petty cash 203,000 Interest...
An abridged set of consolidated financial statements for Toggles plc is given below. Required: (a) Answer, briefly, the following questions: 1 What is meant by non-controlling interests in both the...
Which will undergo the greater rate of cooling: a red-hot poker in a warm oven or a red-hot poker in a cold room (or do both cool at the same rate)?
On December 31, 2014, Kate Holmes Company has $7,000,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2015. On January 28, 2015, Holmes enters into a refinancing...
Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is 178 gallons with a standard deviation of 45. Due to a substantial ordering cost, which is estimated to be $58 per...
A wire carrying a $3.0-\mathrm{A}$ current lies along the $x$ axis of an $x y$ coordinate system, extending from $x=0$ to $x=10 \mathrm{~m}$. What is the magnitude of the magnetic field at...
Gill Company, organized in 2017, has the following transactions related to intangible assets . Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for...
Elternteil Corporation owns 70 percent of Schwester Corporation's common stock and 45 percent of Bruder Corporation's common stock. In addition, Schwester owns 40 percent of Bruder's stock. In 20X6,...
What is the term used to describe how easily an asset can be turned into cash?
Explain the reason that a statement of financial position will always 'balance'.
Sales volume has been dropping at Winona Publishing Company. During this time, however, the Shipping Department manager has been under severe financial constraints. The manager knows that most of the...
Briefly discuss THREE factors which will influence the effectiveness of any performance standards selected for the schools new performances measurement system.
Assessing the Effectiveness of Intervention Programmes Aimed at Improving Matric Performance in Serial Underperforming Secondary Schools at uMzinyathi District in KwaZulu-Natal" : With regard to...
Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $700,000 in December. Because Carmen's Dress Delivery is in the mail-order...
1. When developing a business plan, overcoming your fear, is one of the biggest challenges. It comes from lack of experiences, as such they often listen to family and friends who have little to no...
what ways does the organization measure and evaluate the effectiveness of its cultural initiatives, and how do these metrics inform ongoing efforts to refine and strengthen the organizational culture?
The author purchased a slot machine (Bally Model 809) and tested it by playing it 1197 times. There are 10 different categories of outcomes, including no win, win jackpot, win with three bells, and...
Refer to the situation described inBE 18-13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...
(a) Name two nominal accounts. (b) In which ledger would you find nominal accounts?
What is a personal account?
On which side of the trial balance would you expect to find the following balances: motor vehicles; returns outwards; carriage inwards; carriage outwards; sales; discounts received?
A state law bans the use of used fabric to stuff mattresses. The state claims its objectives are public health (the used cloth could carry disease) and protection of consumers from deceit. Assume...
Explain the First Amendment. What rights are included? Who is the individual protected from? Government, private employers, or private citizens? Response Requirements Student responses are one page...
It is important to have an awareness of the Rules of Offer and Acceptance in order to avoid missing out on opportunities to enter into beneficial business transactions.A contract must demonstrate a...

Why is capital usually shown in a statement of financial position as a liability?

Question:

Step by Step Answer:

Capital is usually shown in a statement of financial position also known as a balance sheet as a liability for a specific reason related to accounting ...View the full answer

Cambridge International AS And A Level Accounting

Students also viewed these Business questions