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?

Q: What topic does this question test?

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

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: The unpaid preference dividend is carried forward to a future year.

📋 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 May/June 2012 examination, Paper 1 Variant 2.

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