A-LevelAccountingCompany AccountsMay/June 2012Paper 1 Q151 Mark
A company has an issued share capital of 200 000 6% cumulative preference shares of $1 each fully paid and 800 000 ordinary shares of $1 each fully paid. Assuming that the company earns no profit in the year, which statement is correct?
ABoth preference and ordinary shares are paid a dividend in the year.
BThe unpaid dividends for both preference and ordinary shares are carried forward to a future year.
CThe unpaid preference dividend is carried forward to a future year.
DThe preference shares are paid a total dividend of $12 000 in the year.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of company accounts 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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