Accounting Multiple Choice Question – 8 September 2023

Alex plc annual results are shown below:

• profit for the year – £215,000
• preference dividends – £15,000
• ordinary dividends – interim paid – £25,000
• ordinary dividends – final approved – £75,000
• retained profit for the year – £100,000

The final ordinary dividend has been approved by the shareholders, but for financial reasons will only be paid after one year.

What are the ‘earnings’ to be included in the earnings per share calculation?

Select ONE answer:

1. 100,000
2. 175,000
3. 200,000
4. 215,000

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 3

1. Not correct
2. Not correct
3. Correct: £215k – £15k
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.