Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

A business has a greater amount of capital at the end of year 2 than it had at the end of year 1. No further capital was added during year 2. What does this indicate?

  • AThe business has made a loss.
  • BThe business has made a profit.
  • CThe business has sold some non-current assets.
  • DThe business has taken a long-term loan.

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