Accounting Multiple Choice Question – 31 December 2022

A company has issued non-cumulative preference shares and ordinary shares.

Which statement is correct?

Select ONE answer:

1. If no preference dividend is paid, it is carried forward to a future year.
2. Preference shareholders always get a dividend.
3. Preference shareholders and ordinary shareholders always get a dividend.
4. Preference shareholders may get a dividend.

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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