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Profit is a Liability or asset?

Answer Posted / 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



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