Accounting Multiple Choice Question – 20 March 2021

A company has an authorised capital of £1,000,000.

Which statement must be true?

Select ONE answer:

1. The company must issue £1,000,000 in shares
2. The company must not issue more than 1,000,000  shares
3. The shares issued must not exceed £1,000,000 
4. The shares and debentures must not exceed £1,000,000

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 3

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

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