Accounting Multiple Choice Question – 11 August 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 business redeems debentures by cash payment.

What is the effect of this payment on equity, long-term liabilities and working capital?

Select ONE answer:

  1. equity decrease & long term liabilities decrease & working capital decrease
  2. equity decrease & long term liabilities decrease & working capital no change
  3. equity no change & long term liabilities decrease & working capital decrease
  4. equity no change & long term liabilities increase & working capital decrease

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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