Accounting Multiple Choice Question – 17 January 2021

Which of the following will increase gearing?

Select ONE answer:

1. conversion of loan stock into shares
2. transfer of a general reserve to the Profit and Loss Account
3. upward revaluation of freehold premises
4. writing off Goodwill

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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