O-LevelAccountingThe fundamentals of accountingOct/Nov 2022Paper 1 Q221 Mark

Which statement about the members of a limited company is correct?

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

ATheir liability is limited to the total of their investment in the company.

BTheir liability is limited to the total of their personal assets.

CThey are not liable for the debts of the company.

DThey have unlimited liability for the debts of the company.

✓ Correct Answer

The correct answer is A: Their liability is limited to the total of their investment in the company.

📋 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 O-Level Accounting Question

Topic

This multiple-choice question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 3.

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