A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2024 · Q11 Mark

Which statement about sole traders is correct?

AThey always trade by buying and selling goods.

BThey do not employ any staff.

CThey keep all their profit themselves.

DThey maintain a retained earnings account.

✓ Correct answer

C: They keep all their profit themselves.

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2024 Paper 1 Variant 2, question 1.

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