A-LevelAccountingLimited CompaniesOct/Nov 2025Paper 1 Q181 Mark

The following information is extracted from the draft statement of financial position of a limited company at 31 December. ordinary share capital $900 000 share premium $80 000 general reserve $96 000 retained earnings (opening) $230 000 profit for the year $145000 What is the maximum amount of dividend that the limited company can declare?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: $471000.

Q: What topic does this question test?

This question tests Limited Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$145000

B$375000

C$471000

D$551000

✓ Correct Answer

The correct answer is C: $471000

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Limited Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2025 examination, Paper 1 Variant 2.

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