Accounting Multiple Choice Question – 10 September 2021

Which is a reason for a company issuing bonus shares to its existing shareholders?

Select ONE answer:

1. to capitalise reserves
2. to increase profits available for dividend
3. to raise the market value of shares
4. to raise additional cash

Show your workings to arrive at your answer, and explain and justify your reasons:

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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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