Q284
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?
A.
Business entity concept
AnswerB.
Money measurement concept
C.
Cost concept
D.
Going concern concept
Answer: Option A
Solution
Answer: Option A
Solution:
Based on Business entity concept, share capital account shown on the liability side of a balance sheet. The business entity concept also explains why owners' equity appears on the liability side of a balance sheet (i.e. credit side).