Accounting Multiple Choice Question – 11 July 2023

Which of the following will increase gearing?

Select ONE answer:

1. 1.conversion of a convertible loan into ordinary shares
2. 2.transfer of a general reserve back to retained earnings
3. 3.upward revaluation of a freehold premises.
4. 4.writing off goodwill

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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