Accounting Multiple Choice Question – 12 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting
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When a company is short of liquid funds, for what purpose may the reserves be used? 

Select ONE answer:

  1. to finance the take-over of another business the company is anxious to acquire
  2. to maintain dividends during periods of low profitability
  3. to pay creditors promptly so as to obtain discounts
  4. to write down assets whose value to the business has fallen

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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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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