Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Capital
- This topic has 4 replies, 3 voices, and was last updated 5 years ago by John Moffat.
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- May 3, 2018 at 1:08 pm #449928
The capital of a business would change as a result of:
A a supplier being paid by cheque
B raw materials being purchased on credit
C non-current assets being purchased on credit
D wages being paid in cash
The answer is B
but l dont understand why it is soMay 3, 2018 at 2:03 pm #449933The Capital of a Business changes when the wages are being paid in cash
That’s the correct answer
May 3, 2018 at 3:58 pm #449962taak: Please do not answer questions in this forum – it is Ask the Tutor, and you are not the tutor 🙂 (But please do help people in the other Paper F3 forum)
suleymanabuzerli: Where on earth did you find this question? Because assuming you have copied it all correctly, the answer is certainly not B! Taak is right – the correct answer is D.
Paying wages (whether in cash or not) is an expense which reduces the profit and therefore reduces the capital.Are you watching my free lectures? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
May 3, 2018 at 4:01 pm #449964My Apologies
May 3, 2018 at 4:10 pm #449966No problem 🙂
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