A-LevelAccountingCompany Accounts and ReservesOct/Nov 2011Paper 1 Q191 Mark
What occurs in a rights issue of shares?
AAny premium on the issue is added to a capital reserve.
BAny premium on the issue is added to a revenue reserve.
CAny premium on the issue is written off to the income statement.
DThe nominal value of the issue is written off to the income statement.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of company accounts and reserves 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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