A-LevelAccountingCompaniesMay/June 2013Paper 1 Q141 Mark
During the year ended 31 December 2012 a business made a profit of $31000. A dividend of 8% was paid on the 200000 ordinary shares of $0.50 each, and $12000 was transferred to general reserve. The retained earnings of the business on 31 December 2012 amounted to $68000. What was the balance of retained earnings on 1 January 2012?
A$41000
B$57000
C$65000
D$79000
✓ Correct Answer
The correct answer is B. 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep