Day: March 14, 2022

Accounting Multiple Choice Question – 14 March 2022

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

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The table shows an extract from the financial statements of a limited company.

  • ordinary share capital (£1 shares) – £500,000
  • share premium – £150,000
  • revaluation reserve – £200,000
  • retained earnings – £250,000

What is the maximum dividend per share that can be paid?

Select ONE answer:

  1. £0.50
  2. £0.80
  3. £0.90
  4. £1.20

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 ==> £250k / 500,000 = £0.50 per share
  2. Not correct
  3. Not correct
  4. Not correct

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