A-LevelAccountingLimited Company Accounts (Share Capital & Reserves)Feb/Mar 2023Paper 1 Q181 Mark
A limited company intends to issue shares at a price above the par value. Which items, apart from the bank balance, will be affected by the share issue?
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. This question tests the candidate's understanding of limited company accounts (share capital & reserves) 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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