Accounting Multiple Choice Question – 19 May 2020

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

Accounting
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Which of the following cannot normally be determined from the financial statements of a public limited company whose shares are quoted on the Stock Exchange?

Select ONE answer:

  1. The nominal (par) value of the issued ordinary share capital of the company.
  2. The book value of the company’s fixed assets.
  3. The current market value of the issued ordinary share capital of the company.
  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 – The nominal (par) value of the issued ordinary share capital of the company is shown in the capital and reserves section of the balance sheet.
  2. Not correct – The (net) book value of the company’s fixed assets is shown in the fixed assets section of the balance sheet.
  3. Correct – The market value of ordinary shares can change on a daily basis. Therefore, even if the market value at the end of the year was shown in the financial statements when they are being printed, this figure would be out of date by the time the financial statements were published. Therefore, while a market value could be shown in the financial statements, it cannot be the current market value.
  4. Not correct

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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