Day: December 3, 2023

Accounting Multiple Choice Question – 3 December 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 shareholder sells some ordinary shares for more than he paid for them.

What is the effect on the company statement of financial position?

Select ONE answer:

  1. ordinary share capital – Decrease and share premium account – Decrease
  2. ordinary share capital – Decrease and share premium account – Increase
  3. ordinary share capital – No effect and share premium account – Decrease
  4. ordinary share capital – No effect and share premium account – No effect

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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