A-LevelAccountingLimited CompaniesFeb/Mar 2022Paper 1 Q171 Mark
Which statements are correct? 1 Dividends can be paid out of the general reserve. 2 Rights issues can be made from the share premium account. 3 The general reserve can be created from retained earnings.
A1 and 2
B1 and 3
C1 only
D2 and 3
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of limited companies within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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