Post Utme Mountain Top University 2019 Commerce Question 8

Practice objective / multiple choice question 8 from the 2019 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2019 Commerce Objective / Multiple Choice
Question 8 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • COMMERCE • objective

A sole trader has the following financial statements: income statement and balance sheet. Which of the following is a correct statement about the sole trader's financial position?

Answer Options

Correct Answer A. The sole trader's net worth is equal to the total assets minus total liabilities.
B. The sole trader's net worth is equal to the total equity plus total liabilities.
C. The sole trader's net worth is equal to the total assets minus total equity.
D. The sole trader's net worth is equal to the total liabilities minus total assets.
Correct Answer
A
Correct Option:
The sole trader's net worth is equal to the total assets minus total liabilities.

About This Question

This is Post Utme Mountain Top University 2019 Commerce Question 8. It is one of the objective questions from the 2019 Post Utme Mountain Top University Commerce examination.

View More Post Utme Mountain Top University 2019 Commerce Questions More Post Utme Mountain Top University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support