A-LevelAccountingPreparation of financial statements9706/12 · May/June 2014 · Q211 Mark

A company issues shares at a premium. Which effect does the issue have on the company's statement of financial position? net assets, share capital A decrease, decrease B decrease, no effect C increase, increase D increase, no effect

Adecrease, decrease

Bdecrease, no effect

Cincrease, increase

Dincrease, no effect

✓ Correct answer

C: increase, increase

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2014 Paper 1 Variant 2, question 21.

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