Accounting Multiple Choice Question – 21 March 2021

Which adjustment will result in an increase in a company’s stated profit?

Select ONE answer:

1. amortisation of Goodwill
2. application of reserves for the issue of bonus shares
3. capitalisation of development costs
4. upward revaluation of fixed assets

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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