Day: June 14, 2021

Which statement about bonus shares is true?

Select ONE answer:

1. They may be issued as repayment of debentures.
2. They may be issued at a premium.
3. They may be issued to the holders of preference shares.
4. They may be issued using the premium received from an issue of preference shares.

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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