Learning Goal: I’m working on a accounting question and need the explanation and answer to help me learn.
Owners equity is an internal liabliability which comprising capital and net profit. It is otherwise called as networth.
1) Owners equity.
Owners equity is an internal liability which comprcomprising capital and net profit. It is otherwise called as networth.
2) Long – Term liabilities.
These are external liabilities which are to be paid off after a long time.
3) Current Liabilities
These are also external liabilities but they are to be paid off within a short period of one year or a period greater than a year but within the operating cycle.
Example : Bills Payable, Sundry creditors, Bank O/D and outstanding expenses.
