Day: September 3, 2023

Accounting Multiple Choice Question – 3 September 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 has issued £1,000.000 of 8 % convertible loan shares, which the holder can convert in November 2026 into ordinary shares at a rate of one share for each £2.00 of loan share held.

What is the correct presentation in the final accounts for the year ended 31 December 2023?

Select ONE answer:

  1. Statement Of Financial Accounts: Non-Current Liability £1,000,000 AND Income Statement: Dividend £80,000
  2. Statement Of Financial Accounts: Non-Current Liability £1,000,000 AND Income Statement: Interest £80,000
  3. Statement Of Financial Accounts: Share Capital £500,000 AND Income Statement: Dividend £40,000
  4. Statement Of Financial Accounts: Share Capital £500,000 AND Income Statement: Interest £40,000

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 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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