Ecz Principles of Accounts grade 12 2013 paper 1
1) An accountant mistakenly treats a capital expenditure item as revenue expenditure.
What is the effect of this error?
A Gross profit is understated.
B Net profit is overstated.
C Total assets are overstated.
D Total assets are understated
2) … is regarded as the amount available to the business to meet its running the business.
A Capital employed *’
B Capital owned
C Working capital
D Net assets
3) The average stock of a sole trader is K40. Its rate profit is 20% on cost is 5 times a year. Gross. What are the sales for the year?
A K160
B K200
C K240
D K250
