--%>

Why Liabilities are so important

Why are Liabilities are so important? Write some of its Significance in Accounting?

E

Expert

Verified

Significance of Liabilities: Let suppose, you have father and you comprise three daughters and two son. You are on a job of accountant in a company. And the entire family member is dependent on you. It is your personal liability to educate your offspring, to feed your family and care them financially. This personal liability will provide you power to live better life in your family. Subsequent to taking all liability on your shoulders, you will become responsible human being. Like this, liabilities of business makes businessman powerful to take all kind of business risk and survive indefinite life span.

   Related Questions in Financial Accounting

  • Q : Types of secondary market trading

    Compare and contrast a variety of types of secondary market trading structures.

  • Q : Impressions using stereotypes How we

    How we form impressions by using stereotypes. Explain? Is stereotyping always negative? Give an example.

  • Q : Prepare relevant ledger accounts

    Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . XYZ Pvt Ltd 01.01.2009 Started business

  • Q : Balance per bank What does Balance per

    What does Balance per bank signify?

  • Q : Case study of an Operational-Strategy

    Develop a case study of the Operational-Strategy interface as it applies to organisational change (last 3-5 years) within your organisation, together with a project implementation case study .You are required to detail the operational chan

  • Q : Computing overall balance and its

    Discuss how to compute overall balance and explain some of its significance.

  • Q : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : International portfolio for buying

    Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?