Thursday, September 6, 2012

LIABILITY


EQUITY = TOTAL ASSETS - TOTAL LIABILITY


Lets understand what a Liability is ?

Liability in common parlance is when a person or an organisation that owes something to somebody.
Bank loan is a liability.


video

EQUITY = TOTAL ASSETS - TOTAL LIABILITY

Equity  is ownership of an asset
Asset is expenditure made to procure items to run the business.
Liability is a debt ( money owned to someone) and obligation towards repayment.


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