Question

Capital is also known as:

• A. Liability
• B. Owner’s Equity
• C. Current Asset
• D. Fixed Asset

Answer 1

Answer:

B. Owner’s Equity

Capital

• Cash or assets invested by the owner into the business is known as capital.

• Capital is an obligation of the business to the owner.

• It is the owner's claim on the assets of the business.

• Capital is also known as owner's equity.

• Capital= Assets- Liabilities