Accounting Multiple Choice Question – 13 May 2022

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

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A company issues 500 000 £1 ordinary shares for £3 each and £250 000 debentures of 6%.

By which amount will the net assets of the company increase?

Select ONE answer:

  1. £750,000
  2. £1,250,000
  3. £1,500,000
  4. £1,750,000

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 – Dr Cash £1,750k Cr Share Capital £1,500 Cr LT Liability £250k
  4. Not correct

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