Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

What is one reason for calculating the profit of a sole trader?

  • Ato analyse the performance of the business against previous years
  • Bto decide on the amount of dividend to be paid to the shareholders
  • Cto reconcile the cash book balance with the bank statement balance
  • Dto work out the liquidity of the business

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