Accounting Multiple Choice Question – 18 May 2020

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Which of the following should be shown in the profit and loss appropriation account of a limited company?

Select ONE answer:

  1. Debenture interest paid during the current accounting period, in respect of the same period.
  2. Dividends paid during the current accounting period. in respect of the same period.
  3. Directors’ remuneration paid during the current accounting period, in respect of the same period.
  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 – Debenture interest paid during the current accounting period, in respect of the same period is an expense. and, just like any other expense, is charged as an expense in the profit and loss account (in accordance with the accruals concept) not the profit and loss appropriation account.
  2. Correct
  3. Not correct – Remuneration paid to directors, during the current accounting period, in respect of the same period is an expense, and, just like any other expense, is charged as an expense in the profit and loss account (in accordance with the accruals concept) not the profit and loss appropriation account.
  4. Not correct

 

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