Accounting Multiple Choice Question – 12 April 2021

When deciding whether to transfer money from an interest bearing bank account to an investment in ordinary shares, which of the following ratios should be considered?

Select ONE answer:

1. dividend yield
2. earnings per share
3. interest cover
4. return on shareholders’ funds

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 1

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

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