Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A company’s statement of financial position showed these items. Bank (debit balance) $300\,000$ Ordinary share capital $1\,000\,000$ Share premium $200\,000$ Revaluation reserve $100\,000$ General reserve $100\,000$ Retained earnings $400\,000$ What is the highest total dividend that the directors may recommend?

  • A$300\,000$
  • B$400\,000$
  • C$500\,000$
  • D$700\,000$

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