A-LevelAccountingFinancial Statements of CompaniesOct/Nov 2022Paper 1 Q181 Mark
On 1 January a company had 300000 ordinary shares of $1 each and a 10% bank loan of $100000. On 1 July the company issued a 6% debenture of $800000. The profit from operations for the year ended 31 December was $120000. The company paid a dividend of $0.05 per ordinary share during the year. What was the profit for the year ended 31 December?
A$71000
B$86000
C$96000
D$110000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of financial statements of companies within the Accountingsyllabus. The examiner's mark scheme requires...
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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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