Day: August 12, 2022

When may a company issue redeemable preference shares?

Select ONE answer:

1. when it has already issued non-redeemable debentures
2. when it has already issued non-redeemable shares
3. when it has already redeemed its debentures
4. when it has sufficient reserves to fund the issue

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 2

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

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