Day: October 26, 2023

Accounting Multiple Choice Question – 26 October 2023

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

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A company has issued £1M of 6% convertible debenture loans.

80% of holders converted at the rate of 48 ordinary shares of £0.25 each for each £100 of convertible debenture loans.

How many new ordinary shares were issued?

Select ONE answer:

  1. 384,000 shares
  2. 400,000 shares
  3. 480,000 shares
  4. 800,000 shares

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 1

  1. Correct == > (£1,000,000 / £100) * 48 shares * 0.8
  2. Not correct
  3. Not correct
  4. Not correct

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