A-LevelAccountingCompanies (Financial Statements & Appropriation)May/June 2016Paper 1 Q161 Mark
A company has 1000000 ordinary shares of $1 issued at $2.50. It also has a 5% debenture of $300000. Profit from operations for the year was $465000. The directors paid an 8% ordinary share dividend during the year. By which amount did the retained earnings increase during the year?
A$250000
B$370000
C$385000
D$400000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of companies (financial statements & appropriation) 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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