Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

In more recent times, Rafiq has been able to supply more detailed financial information.
(c)[3]

Calculate the total purchases for the year ending 31 December 2021.

(d)[6]

Prepare the income statement for the year ended 31 December 2021.

(a)[1]

Calculate the amount paid as an interim dividend.

(b)[2]

Identify two factors which directors should take into account when deciding the amount of a dividend payment to shareholders.

(e)[3]

State three reasons why a company sometimes makes a rights issue of shares instead of a general issue of shares.

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