Accounting Multiple Choice Question – 30 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A company‘s authorised share capital is. . . ?

Select ONE answer:

  1. the amount of share capital the company has issued.
  2. the amount of share capital which the directors of the company intend to issue.
  3. the amount of share capital stated in the company‘s original Memorandum of Association.
  4. the maximum amount of share capital which the company currently has the power to issue.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – A company’s authorised share capital can be increased, if the shareholders so approve, by vote.

 

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Accounting Multiple Choice Question – 29 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The right to transfer shares in a private company . . . ?

Select ONE answer:

  1. may be restricted.
  2. must be restricted.
  3. cannot he restricted.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – This is the essence of a private company – the Companies Acts require that shares in a private company cannot be freely bought and sold by the public.
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 28 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A public limited company registered in the United Kingdom must have an authorised share capital of at least . . .?

Select ONE answer:

  1. £7,500
  2. £30,000
  3. £50,000
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – Per the Companies Acts
  4. Not correct

 

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Accounting Multiple Choice Question – 27 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A PLC is . . .?

Select ONE answer:

  1. a company whose shares are ‘listed’ on a recognised Stock Exchange.
  2. a public limited company.
  3. a private limited company.
  4. a public sector body.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – Although shares in most PLCs are traded on a recognised Stock Exchange they do not have to be in order for the company to be a PLC.
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 26 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The liability of a shareholder in a limited company, to the company, cannot exceed . . .?

Select ONE answer:

  1. any amount unpaid on his / her shares.
  2. the amount called up on his / her shares.
  3. the total value of his / her personal net assets.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – any amount unpaid on his / her shares.
    the amount called up on his / her shares.
    the total value of his / her personal net assets.
  2. Not correct
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 25 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In a limited company . . .?

Select ONE answer:

  1. the liability of the shareholders is limited.
  2. the liability of the company is limited.
  3. the liability of both the shareholders and the company is limited.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – Although the company can incur unlimited debts, which it is liable to pay. the shareholders will not become liable to pay them.
  2. Not correct
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 24 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A person who acquires shares in a company is known as . . .?

Select ONE answer:

  1. a shareholder.
  2. a director.
  3. a partner.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct
  2. Not correct – A person may be a director of a company and yet not own any shares in it.
  3. Not correct – The term ‘partner’ is confined to partnerships. Two people may go into business together as business partners but if they set up a company and become shareholders and / or directors then the latter terms should be used when referring to them.
  4. Not correct

 

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