O-LevelAccountingThe fundamentals of accounting7707/11 · Oct/Nov 2019 · Q21 Mark

Why does the owner of a business calculate profit?

Ato find the return on capital

Bto find the total expenses

Cto know how much he can borrow from the bank

Dto know the loan interest he can afford to pay

✓ Correct answer

A: to find the return on capital

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2019 Paper 1 Variant 1, question 2.

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