Capital Stock and Share Capital Capital Stock and Share Capital,The terms “capitals stocks” and “share capitals” are often used interchangeably and both refer to the amount of capital that a company has raise through the issuance of shares. However, there can be some subtle differences in how the terms are use in certain contexts.… Read More »
Share capital Liability Share Capital Liability, Is Share Capital Liability? When discussing the financial structure of a company, the term “share capital” frequently arises. It represents the funds raised by a company through the issuance of shares to shareholders. While share capital is an essential component of a company’s equity, its classification as liability… Read More »
Balance Sheet Equation Balance sheet equation also known as the accounting equation, is a fundamental principle of accounting that states that the assets of a business are equal to the sum of its liabilities and owners’ equity. Mathematically, it can be represent as: Assets = Liabilities + Owners’ Equity This equation is always in balance,… Read More »
