Accounting Multiple Choice Question – 12 February 2021

A company’s convertible loan stock will be converted to ordinary shares on 1 January 2025.

The company that has issued the convertible loan stock should show it in its Balance Sheet at 31 December 2020 as?

Select ONE answer:

1. authorised capital.
2. creditors: amounts falling due after more than one year.
3. creditors: amounts falling due within one year.
4. issued share capital.

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 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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