Accounting Multiple Choice Question – 19 January 2021

A company wishes to raise finance without increasing gearing.

Which option will it use?

Select ONE answer:

1. a bonus issue of ordinary shares
2. an issue of debentures
3. can issue of preference shares
4. a rights issue of ordinary shares

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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