Capital increases if ______ increases

A. Expenses are greater than income

B. Drawings

C. Interest on capital

D. Revenue

Answer: Option D

Solution(By Examveda Team)

Capital increases if revenue increases. The extent to which an increase in revenue will affect company's working capital depends on how efficiently business operates.

Join The Discussion

Comments ( 2 )

  1. Examveda
    Examveda :
    5 years ago

    If revenue increases than net profit will increase and net profit will be added to capital

  2. Somya Shrivastava
    Somya Shrivastava :
    5 years ago

    please elaborate.

Related Questions on Accounting