Day: August 10, 2022

Which statement is correct?

Select ONE answer:

1. A capital redemption reserve may be used to finance the redemption of redeemable preference shares.
2. All of the issued share capital may be redeemed.
3. Partly paid redeemable preference shares may be redeemed.
4. The company’s Articles of Association must authorise the issue of redeemable shares.

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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