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Commerce · Q343

Accounting

Graduate and Post Graduate · Commerce · question 343

Q343

Loss leads to reduction in

A.
Capital
Answer
B.
Income
C.
Liabilities
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
Loss leads to reduction in Capital. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure.