Day: October 31, 2023

Accounting Multiple Choice Question – 31 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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Alex Trading plc has 500,000 ordinary shares in issue and the following reserves.

  • share premium – £20,000
  • revaluation reserve – £50,000
  • general reserve – £80,000
  • retained earnings – £40,000

What is the maximum dividend per share?

Select ONE answer:

  1. £0.08
  2. £0.24
  3. £0.34
  4. £0.38

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 – £80k + £40k / 500k
  3. Not correct
  4. Not correct

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