Day: February 11, 2023

Accounting Multiple Choice Question – 11 February 2023

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

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Alex plc issues a 5-year debenture bond of £1M

Interest for years 1 and 2 will be at the rate of 10% per annum, and for years 3, 4 and 5 it will be 12% per annum.

What will be the charge for interest shown in its Income Statement each year?

Select ONE answer:

  1. £100k p.a.
  2. £100k in Years 1 and 2, and £120k in Years 3, 4 and 5
  3. £112k p.a
  4. £120k p.a.

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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