Accumulated Fund Equals Owner's Equity in Sole Traders

Steps:

• Identify accumulated fund as net assets (assets minus liabilities) in non-profit organizations.
• Recognize capital in sole traders as the owner's equity, also net assets.
• Compare both as the balancing figure on the statement of financial position's equity side.
• Conclude they are equivalent, representing residual interest after liabilities.

Why A is correct:

• Capital is defined as the owner's claim on net assets in a sole trader's statement of financial position, mirroring the accumulated fund's role in non-profits per accounting standards like IFRS.

Why the others are wrong:

• B: Capital and liabilities together form the right side but accumulated fund excludes liabilities, focusing only on equity.
• C: Current liabilities are short-term obligations, not equity or net assets.
• D: Non-current assets are long-term resources, part of the left side, not the equity equivalent.

Final answer: A