PRC-1 · Chapter 10 · Question 42 of 100
Which of the following items would normally appear under the 'Equity' section of a sole trader's Statement of Financial Position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Retained Earnings / Net Profit added to Opening Capital
Explanation
The Equity section for a sole trader typically shows Opening Capital + Net Profit - Drawings = Closing Capital.
More Preparation of Financial Statements MCQs
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