What change does profit makes to capital?

Q35.What change does profit makes to capital?

(1) Profit gets added to the capital
(2) All of these
(3) Profit gets reduced from capital
(4) Profit has no change to capital

Answer

Profit gets added to the capital

Related Questions on Theory Base of Accounting

Q36.Investment A/c is related to

(1) Real A/c
(2) Personal A/c
(3) None of these
(4) Nominal A/c

Answer

Real A/c

Q37.Under ___ method, the balance of the capital account fluctuates from year to year.

(1) Current account
(2) Fixed capital account
(3) Floating capital account
(4) Fluctuating capital account

Answer

Fluctuating capital account

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