Accounting Multiple Choice Question – 27 December 2020

When a shareholder sells some shares for less than he paid for them, what will happen to the share capital of the company?

Select ONE answer:

1. It will fall by the nominal value of the shares sold.
2. It will fall by the sales proceeds of the shares sold.
3. It will increase by the amount received from the sale of the shares.
4. It will remain the same as before.

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

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