What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to sources of finance. 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 sources of finance, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Recommending a share issue to a sole trader or partnership.
- Financing a non-current asset with an overdraft.
- Treating dividends as an expense, or debenture interest as an appropriation.
- Saying debenture holders own part of the company or can vote.
- Saying a bonus issue raises cash.
- Listing sources without recommending one, when the question asks for advice.
- Forgetting that a share premium cannot be distributed as a dividend.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Sources of finance revision notes.