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If capital in the beginning is more than at the end then it will be
  • a)
    Loss
  • b)
    Neither profit or loss
  • c)
    Profit
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If capital in the beginning is more than at the end then it will bea)L...
**Answer:**

To understand why the correct answer is option 'A' (Loss), let's break down the question and the concepts involved.

**1. Understanding Capital:**
In commerce, capital refers to the total amount of money or assets invested in a business or enterprise. It represents the initial investment made by the owners or shareholders to start or expand the business.

**2. Profit and Loss:**
Profit and loss are the two key outcomes that can occur in a business. They are determined by comparing the revenue generated with the expenses incurred during a specific period.

- Profit: When the revenue earned is higher than the total expenses, a business is said to have made a profit. Profit reflects the positive financial performance of a business and is usually the desired outcome.
- Loss: On the other hand, when the expenses exceed the revenue, a business incurs a loss. Loss represents a negative financial performance and is generally considered unfavorable.

**3. The Given Scenario:**
According to the given scenario, the capital in the beginning is more than at the end. This implies that the initial investment or capital has decreased over time, indicating a reduction in the value of the assets or money invested.

**4. Interpreting the Result:**
When the capital in the beginning is greater than at the end, it suggests that the business has experienced a decrease in its overall value. This reduction can occur due to various factors, such as:

- Operating losses: If the business has incurred significant expenses or faced a decline in revenue, it may result in a decrease in capital.
- Depreciation: If the assets owned by the business have depreciated in value over time, it can contribute to a decrease in capital.
- Liabilities: If the business has accumulated debts or liabilities that exceed its assets, it can lead to a reduction in capital.

Therefore, in the given scenario, where the capital at the beginning is more than at the end, the correct answer is option 'A' (Loss). It indicates that the business has incurred a loss, resulting in a decrease in the initial investment or capital.
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If capital in the beginning is more than at the end then it will bea)L...
Yes answer is a.... if the opening capital is greater than closing capital it is equal to loss .......... if the closing capital is greater than opening capital it is equal to profit
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