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Which of the following is added to the proprietor's capital?

Accounts - Principles of Accounts
WAEC 2010

Which of the following is added to the proprietor's capital?

  • A. Net profit
  • B. gross profit
  • C. net sales
  • D. gross sales
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Correct Answer: Option A
Explanation

Net profit is the actual profit after working expenses not included in the calculation of gross profit have been paid. That is, it is the profit after expenses have been deducted from gross profit. It makes up part of the business capital called plough-back profit


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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