Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

A Business entity concept
B Money measurement concept
C Cost concept
D Going concern concept

Correct Answer: Business entity concept

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).
Bissoy MCQ
#Commerce #Accounting

Related Questions

Rashna Company collected the following data in its accounting records in 2014 : From the income statement : Depreciation expense Tk. 1,000 Loss on sale of equipment 3,000 From the comparative balance sheet : Beginning balance , equipment Tk. 12,500 Ending balance , equipment 8,000 Beginning balance , accumulated depreciation 2,000 Ending balance , accumulated depreciation 2,400 No new equipment was purchased during the year. The equipment was sold at the end of the year. What was the cash in -flow from the sale of equipment in 2014?
A Tk, 3,900
B Tk. 1,000
C Tk. 900
D Tk. 600
Milo has the year-end balances as follows: Account receivables TA. 5000; Supplies TA. 12,000; Equipment's TA. TA. 18,000; Accounts payable TA. 17,000 and Owner's equity TA. 43,000. The cash account balance was not available at year-end, Given the account balances listed, the balance in the cash account should be:
A TA. 25,000
B TA. 95,000
C TA. 43,000
D Can't be determined
The Balance sheet reported a beginning balance TK. 20,000 in Account Receivable and an ending balance of TK. 15,000. Credit sale of TK. 2,00,000 were made during the year. Using the information computer cash collection from customers .
A TK. 2,05,000
B TK. 1,95,000
C TK. 2,00,000
D TK. 2,15,000
Consider the following table named 'account' . What is the correct SQL to get all the account information of 'Motijheel' branch. Account ID 10001 10002 10003 Account Holder Md. Humaun Kabir Ruhul Amin Aminul Hossain Account type Savings Savings Business Branch Motijheel Uttara Motijheel
A SELECT * FROM account
B SELECT * FROM Account WHERE Branch =Motijheel
C SELECT * FROM account WHERE Branch = Motijheel
D SELECT ALL FROM Account WHERE Branch = Motijheel
Which of the following account with normal balance is shown at the debit side of a trial balance?
A Rent income account
B Creditors account
C Unearned income account
D Cash account
Which of the following account with normal balance is shown at the credit side of a trial balance?
A Cash account
B Bank account
C Equipment account
D Accrued expenses account
The Balance sheet reported a beginning balance TK. 20,000 in Accounts Receivable and an ending balance of TK. 15,000 . Credit sale of TK. 2,00,000 were made during the year. Using the information compute cash collection from customers.
A TK. 2,05,000
B TK. 1,95,000
C TK. 2,00,000
D TK. 2,15,000
Lia purchases 50% capital interest in the Kader and Shefa partnership for Tk 22,000. If the capital balance of Kader and Shefa are Tk 40,000 and Tk 30,000, respectively, then Lia's capital balance following the purchase is:
A Tk 15,000
B Tk 20,000
C Tk 22,000
D Tk 35,000
E None of these
Liability-side of the balance-sheet comprises:
A Capital and reserve
B Long-term liabilities
C Current liabilities
D All of above
Five years ago, Tk. 1,200 was deposited into a savings account paying 4.5% interest. Today, the balance in the account is Tk. 1,495. If interest paid on the account was compounded annually, how much interest on interest was earned?
A Tk 25.00
B Tk. 93.10
C Tk. 102.39
D Tk. 130.28

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