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O-LevelAccountingThe fundamentals of accounting7707/13 · Oct/Nov 2021 · Q11 Mark

Why does a trader calculate the profit of his business?

Ato calculate the interest payable on a loan
Bto calculate the provision for doubtful debts
Cto know the total expenses of the business
Dto know whether drawings are at a reasonable level

✓ Correct answer

D: to know whether drawings are at a reasonable level

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 3, question 1.

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