A-LevelAccountingCompany Accounts (Limited Companies)Feb/Mar 2016Paper 1 Q171 Mark

A limited company intends to issue shares at a price above the nominal value. Which items, apart from bank balance, will be affected by the share issue?

Q: What topic does this question test?

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

Ashare capital, capital reserves and revenue reserves

Bshare capital and capital reserves only

Cshare capital and revenue reserves only

Dshare capital only

✓ Correct Answer

The correct answer is B: share capital and capital reserves only

📋 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 Company Accounts (Limited Companies) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2016 examination, Paper 1 Variant 2.

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