Accounting Multiple Choice Question – 15 July 2023

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

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What is a reason for a company issuing bonus shares? 

Select ONE answer:

  1. to increase liquidity
  2. to increase profitability
  3. to reduce gearing
  4. to reduce capital reserves

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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