A-LevelAccountingCompany AccountsFeb/Mar 2025Paper 1 Q191 Mark

A company's statement of financial position included the following details. bank (debit balance): $300 000 ordinary share capital: $1000 000 share premium: $200 000 revaluation reserve: $100 000 general reserve: $100 000 retained earnings: $400 000 What is the maximum total dividend that the directors can propose?

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

The correct answer is C: $500 000.

Q: What topic does this question test?

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

A$300 000

B$400 000

C$500 000

D$700 000

✓ Correct Answer

The correct answer is C: $500 000

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

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2025 examination, Paper 1 Variant 2.

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