Accounting Multiple Choice Question – 21 September 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

In the case of a sole trader ………..?

Select ONE answer:

  1. Earning profit does not affect capital.
  2. Earning profit reduces capital.
  3. Capital can arise only by earning profits.
  4. Earning profit increases capital.

Explain how losses affect capital for a sole trader?:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – Earning profit increases capital.

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