Accounting Multiple Choice Question – 14 March 2022

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

This work is licensed under a Creative Commons Attribution 4.0 International License.