What this practice covers
These questions are drawn from past CIE 0452 Accounting papers and filtered to limited companies. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on limited companies, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying limited liability means the company is not liable for its debts.
- Treating dividends as an expense.
- Treating debenture interest as an appropriation.
- Showing share capital at issue price rather than nominal value.
- Putting debentures in the equity section.
- Paying a dividend out of share premium or the revaluation reserve.
- Saying a transfer to general reserve reduces the profit for the year.
- Saying a public limited company is owned by the government.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Limited companies revision notes.