An accountant prepared a balance sheet for a business. In the balance sheet, the capital of the
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An accountant prepared a balance sheet for a business. In the balance sheet, the capital of the owner was shown next to the liabilities. This confused the owner, who argued: 'My capital is my major asset and so should be shown as an asset on the balance sheet.' How would you explain this misunderstanding to the owner?
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Related Book For
Financial Accounting For Decision Makers
ISBN: 9781405888219
5th Edition
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
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