O-LevelAccountingThe fundamentals of accounting7707/11 · May/June 2010 · Q241 Mark

The capital of a business is higher at the end of year 2 than it was at the end of year 1. No additional capital has been introduced during year 2. What does this mean?

AThe business has made a loss.

BThe business has made a profit.

CThe business has sold some non-current (fixed) assets.

DThe business has taken a long term loan.

✓ Correct answer

B: The business has made a profit.

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2010 Paper 1 Variant 1, question 24.

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The capital of a business is higher at the end of year 2 than it was at the end of year 1. No additional capital has been introduced during year 2. What does this mean?

✓ Correct answer

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