_____ = Liabilities + Capital Salary Account comes under which head 'Capital' means......
Understand the Problem
The question is asking for the identification of accounting terms and classifications related to liabilities, income, and capital in a business context. It tests knowledge on financial terminology and concepts.
Answer
vi. Asset, vii. Indirect Expense, viii. Owner investing funds into the business
The answers are: vi. Asset, vii. Indirect Expense, viii. Owner investing funds into the business
Answer for screen readers
The answers are: vi. Asset, vii. Indirect Expense, viii. Owner investing funds into the business
More Information
In accounting, assets equal liabilities plus owner’s equity, which is also known as capital. A salary account is considered an indirect expense. Capital refers to funds invested by the owner into the business.
Tips
Common mistakes include confusing direct and indirect expenses, and misunderstanding the role of capital in accounting.
Sources
- Assets, Liabilities, and Owner's Equity - Lumen Learning - courses.lumenlearning.com
- What is a Salary Expense Head - Fi Money - fi.money
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