A-LevelAccountingCompany AccountsFeb/Mar 2019Paper 1 Q161 Mark
During the year a business issued $1 ordinary shares at $1.20 each. The directors proposed a final dividend at the end of the year. Which balances in the statement of changes in equity were affected by these transactions?
Aordinary share capital ✓, share premium ✓, general reserve , retained earnings ✓
Bordinary share capital , share premium ✓, general reserve , retained earnings ✓
Cordinary share capital ✓, share premium , general reserve ✓, retained earnings ✓
Dordinary share capital ✓, share premium ✓, general reserve , retained earnings
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of company accounts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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