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A-LevelAccountingCompaniesMay/June 2012Paper 1 Q161 Mark

A company raises finance by issuing debentures. What is the effect on net current assets and short term profits? net current assets profits decrease decrease decrease increase increase decrease increase increase

Adecrease decrease
Bdecrease increase
Cincrease decrease
Dincrease increase

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2012 examination, Paper 1 Variant 2. It tests the topic of Companies and is worth 1 mark.

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