Accounting Multiple Choice Question – 16 January 2021

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

Accounting
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The issued share capital of PQR Ltd. is:

  1. 500,000 6 % preference shares of £1.00 each fully paid
  2. 3,000,000 ordinary shares of £0.50 each fully paid


The company also has a long-term liability consisting of £200,000 of 7.5 % debentures, which were issued some years ago.

The company’s operating profit is £285,000.

What will be the dividend per ordinary share?

Select ONE answer:

  1. £0.04
  2. £0.0425
  3. £0.045
  4. £0.475

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 – (£500k * 0.06) + (£200k * 0.075) = £45k ===> £285 – £45k = £240k / 6,000k shares ===> £0.04
  2. Not correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

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

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