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

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: no effect no effect.

Q: What topic does this question test?

This question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Adecrease decrease

Bdecrease increase

Cno effect increase

Dno effect no effect

✓ Correct Answer

The correct answer is D: no effect no effect

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2016 examination, Paper 1 Variant 2.

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