A-LevelAccountingLimited Companies (Share Capital, Dividends)Oct/Nov 2012Paper 1 Q191 Mark
A company has issued non-cumulative preference shares and ordinary shares. Which statement is correct?
AIf no preference dividend is paid, it is carried forward to a future year.
BPreference shareholders always get a dividend.
CPreference shareholders and ordinary shareholders always get a dividend.
DPreference shareholders may get a dividend.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of limited companies (share capital, dividends) within the Accountingsyllabus. The examiner's mark scheme requires...
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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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