Accounting Multiple Choice Question – 15 July 2023

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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