Question

Write the word / term / phrase which can substitute the following Statement.
When Closing Capital is greater than Opening Capital it denotes ___________

Options

• profit

• loss

•  no profit, no loss

•  assets.

Answer 1

When Closing Capital is greater than Opening Capital it denotes profit.
Explanation: The formula to calculate closing capital is 'Opening Capital + Profit'. Hence, when closing capital is greater than opening capital, it denotes profit. However, if the closing capital is less than the opening capital, it denotes loss.