Accounting Multiple Choice Question – 17 February 2019

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

A sole trader’s capital at any particular date is equal to ……….. ?

Select ONE answer:

  1. the sum of his fixed assets plus his current assets at that date.
  2. the total of his fixed assets at that date.
  3. the total of his net assets at that date plus the total amount of capital he has introduced.
  4. the total of his net assets at that date.

Show your workings to arrive at your answer, and explain and justify your reasons:

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

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4

  • In accordance with the accounting equation, Capital (at any particular date) = Assets (at that date) – Liabilities (at that date). Given that Assets less Liabilities also equals Net Assets, Capital (Assets – Liabilities) must also equal Net Assets.

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