If drawings exceed opening capital plus net profit, and no new capital has been introduced, then the:
A) Business is healthy.
B) Drawings account has a credit balance
C) Business is bankrupt
D) Capital account has a credit balance
Correct Answer:
Verified
Q2: Owner's capital is:
A) Opening capital plus drawings
Q3: An entity's net profit may be calculated
Q4: Which of the following best explains what
Q5: A business has a property worth £60,000,
Q6: Where does the following item appear in
Q7: Which of the following costs would be
Q8: Which of the following statements is not
Q9: Which of the following statements is correct?
A)
Q10: If opening capital is £10,000 and closing
Q11: If opening capital is £120,000, closing capital
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