Interested to Buy Any Domain ? << Click Here >> for more details...
Profit is a Liability or asset?
- 29 Answers
- 53489 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / somya patnaik
no doubt about that profit is an liability bcoz if company
getting profit then definately he distribute between share
holder & keep something for reserve & surplus...
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / vasu.a
profit is liability
profit is reserve and surplus
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / imran pathan
Profit is a liability because it is earned with the use of
investment made by shareholders, in case of company is not
distributed profit it should be shown in the liability side
of the balance sheet.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / giri
By definition, Liability is something which
someone/somebody has some obligation to pay to someone.
From companies point of view, the profit earned by company
must be distributed among the shareholders at the time of
liquidation. So, It is certainly liability.
It cannot be treated as an asset because asset is something
which can give future cashflow or reduce the cashflow in
future and profit cannot do both of those.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / srinivas annavarapu
Business entity concept clearly indicates that the owner of
the company / business is different from the company /
business.
Based on the above concept profit is a liability to the
organisation/business as it is to be distributed amongst
the partners / share holders as it is earned against the
investments made by them.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / sandeep
profit is asset, liabilities and reserves and surplus b'oz
most of money are distributed among the owners some money
keep as reserves for contingency and future investment. if
companies are not distributing money toward owners and dept
holder then it is liabilities in b/sheet.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / ashok pathak
obesely profit is a libility bcoz. the net profit from p&l
a/c we add(+) in capital,
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / harika
profit is liability as it belongs to shareholders
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / suresh
profit is a liability why because asset means property
profit is not a asset to the organisation.
| Is This Answer Correct ? | 1 Yes | 1 No |
What is REPO rate and reverse REPO rate
0 Answers IBPS, RBI, State Bank Of India SBI,
What is Merger? What is Acquisition? What are motive behind mergers And acquisitions?
What is sub- prime lending?
0 Answers State Bank Of India SBI,
What is the difference between Long term Loan and Debt?
What are Preference Shares?
Define Call Money Rate?
i am 28 years old. how can i get a best degree only for commerce and accounting?i mean like b com but i dont want to study subjects other than subjects that come under commerce and accounting for b.com
What is retail banking?
0 Answers RBI, State Bank Of India SBI,
Where Does Bank Of Uganda Derive Its Mandate To Supervise Financial Institutions?
Give Any Three Advantages of Joint Stock Company?
0 Answers Joint Stock Company,
What are the various money market instruments?
I am using log-returns in a study, and I use CAPM to predict the expected return. When calculating the expected return from CAPM, how do I approach with log-numbers? Do I use log-numbers for interest rate, market return and beta, or only the first two?
-
Business Administration (517) - Marketing Sales (1279)
- Banking Finance (3209)
- Human Resources (747)
- Personnel Management (68)
- Hotel Management (29)
- Industrial Management (113)
- Infrastructure Management (14)
- IT Management (97)
- Supply Chain Management (16)
- Operations Management (39)
- Funding (79)
- Insurance (494)
- Waste Management (1)
- Labor Management (48)
- Non Technical (73)
- Business Management AllOther (546)
