A-LevelAccountingPreparation of financial statements9706/12 · May/June 2024 · Q11 Mark

Which statements relate to a sole trader? 1 The business is a separate legal entity. 2 There is no separation between ownership and control. 3 Some of the profit is used to pay interest on the owner's capital. 4 There is no legal requirement to keep full accounting records.

A1, 3 and 4

B1 and 3 only

C2 and 3

D2 and 4

✓ Correct answer

D: 2 and 4

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

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