Accounting Multiple Choice Question – 26 December 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 is financed by: 

  1. 10,000 £1 ordinary shares
  2. £5,000 10% loan

Net profit before interest and taxation is £2,500. 

Tax payable is £400. 

What is the maximum dividend per share payable from this year’s profits? 

Select ONE answer:

  1. £0.16
  2. £0.20
  3. £0.21
  4. £0.25

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 — (£2,500 – (£5,000 *0.1) – £400) / 10,000 = £0.16
  2. Not correct
  3. Not correct
  4. Not correct

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