Question

Which of the following statements correctly represents capital?

Q: Answer-Which of the following statements correctly represents capital?

Capital refers to the owners equity or capital which is long term in nature and is not repayable during the lifetime of the company. It is shown on the liabilities side of the balance sheet as Shareholder Equity or simply as Capital.

A It is a long term source of funding

B it becomes payable on occurrence of certain events

C it represents borrowing of the banks from other banks

D it is shown on the asset sided of the balance sheet

E All of the above

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Which of the following statements correctly represents capital?

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