Author: stuart001uk2014

Which is a reason for a company issuing bonus shares to its existing shareholders?

Select ONE answer:

1. to capitalise reserves
2. to increase profits available for dividend
3. to raise the market value of shares
4. to raise additional cash

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
2. Not correct
3. Not correct
4. Not correct

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

A company redeems its preference shares and makes a bonus issue of one ordinary share for every four held. 

How will these transactions affect the balance sheet?

Select ONE answer:

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

• Not correct
• Correct
• Not correct
• Not correct

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

Which transaction will cause an increase in shareholders’ capital?

Select ONE answer:

1. disposal of a fixed asset for more than its book value
2. increasing the provision for bad debts
3. receipt of a loan
4. receipt of payment from debtor in cash

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
2. Not correct
3. Not correct
4. Not correct

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

What does this formula show?

(profit available for distribution to ordinary shareholders  /  ordinary dividend payable)

Select ONE answer:

1. dividend cover
2. dividend yield
3. earnings per share
4. price earnings ratio

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
2. Not correct
3. Not correct
4. Not correct

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