Accounting Multiple Choice Question – 5 December 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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Which statements are true about debentures and ordinary shares?

Select ONE answer:

  1. debentures can be issued at a premium & ordinary shares are never issued at a premium
  2. debenture holders are owners of a company & ordinary share holders are creditors of a company
  3. debenture interest is a charge against profit & ordinary share dividends are an appropriation of profit
  4. debenture interest varies from year to year & ordinary share dividends are paid at the same rate each year

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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Author: stuart001uk2014

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

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