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    Question

    Which of the following statements correctly represents

    capital?
    A It is a long term source of funding Correct Answer Incorrect Answer
    B it becomes payable on occurrence of certain events Correct Answer Incorrect Answer
    C it represents borrowing of the banks from other banks Correct Answer Incorrect Answer
    D it is shown on the asset sided of the balance sheet Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    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.

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