A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2010 · Q181 Mark

A company makes a bonus issue of shares. What is the effect on the net assets and the reserves in the balance sheet? [Table showing effects on net assets and reserves for options A, B, C, D]

Aincrease, decrease

Bincrease, unchanged

Cunchanged, decrease

Dunchanged, increase

✓ Correct answer

C: unchanged, decrease

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.

About this question

Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2010 Paper 1 Variant 2, question 18.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Preparation of financial statementsFeb/Mar 20161m

A company provided the following information. material units cost per unit $ opening inventory 100 2.00 receipt of ne…

Preparation of financial statementsFeb/Mar 20171m

The following balances related to Ladha's business. At 31 March 2016: total assets $388000, total liabilities $84000…

Preparation of financial statementsFeb/Mar 20171m

A trial balance showed a provision for doubtful debts as $1350. Trade receivables were $50320 which included a debt o…

Reconciliation and verificationFeb/Mar 20161m

A sales ledger control account was prepared. An irrecoverable debt of $40 was omitted and a discount allowed of $68 w…

Reconciliation and verificationFeb/Mar 20161m

The trial balance totals are as follows: debit $500 150 credit $500 000 Which error could have caused the difference?

Analysis and communication of accounting informationFeb/Mar 20161m

The statement of the financial position of a company shows the following: $ tangible non-current assets 20 600 intang…

← Browse all past-paper questions