O-LevelAccountingThe fundamentals of accountingOct/Nov 2022Paper 1 Q241 Mark

A limited company raised funds by issuing ordinary shares, preference shares and debentures. Which statements are correct? 1 Debentures are part of the loan capital. 2 Ordinary shares are part of the equity. 3 Ordinary dividend is paid before debenture interest. 4 Preference shares carry a fixed rate of dividend.

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

The correct answer is B: 1, 2 and 4.

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.

A1, 2 and 3

B1, 2 and 4

C2, 3 and 4

D3 and 4 only

✓ Correct Answer

The correct answer is B: 1, 2 and 4

📋 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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