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A-LevelAccountingCompany AccountsOct/Nov 2016Paper 1 Q161 Mark

How would a transfer to general reserve and the issue of shares at a premium affect the revenue reserves of a limited company? transfer to issue of shares general reserve at a premium A decrease decrease B decrease increase C no effect increase D no effect no effect

Adecrease decrease
Bdecrease increase
Cno effect increase
Dno effect no effect

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of company accounts 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Oct/Nov 2016 examination, Paper 1 Variant 2. It tests the topic of Company Accounts and is worth 1 mark.

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