Tag: Nominal Shares

Accounting Multiple Choice Question – 6 August 2024

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

Photo by Olya Kobruseva on Pexels.com

At the 30 June 2023 Alex plc had the following balances:

  • Equity shares of £1 each £100M
  • Share premium account £80M

During the year ended 30 June 2024, the following transactions took place:

  • 1 September 2023: a 1 for 2 bonus issue of equity shares, using the share premium account.
  • 1 January 2024: a 2 for 5 rights issue at £1.50 per share, taken up fully paid.

What are the balances on each account as at 30 June 2024?

Select ONE answer:

  1. Share Capital £210M and Share Premium Account £110M
  2. Share Capital £210M and Share Premium Account £60M
  3. Share Capital £240M and Share Premium Account £30M
  4. Share Capital £240M and Share Premium Account £80M

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. Notcorrect
  2. Correct  –> Shareholders do not have an  automatic right to be a director or to be involved in management (3).  The partners’ individual shareholdings will be determined by an agreement that is not necessarily related to the existing partnership agreement (1). The concept of perpetual succession means that the company will not dissolve upon the death of a shareholder (4).
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 5 August 2024

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

Photo by Pixabay on Pexels.com

Which of the following may appear as current liabilities ni a company’s statement of financial position?

1.Loan due for repayment within 1 year

2.Taxation

3.Warranty provision

Select ONE answer:

  1. 1 and 2 and 3
  2. 1 and 2 only
  3. 1 and 3 only
  4. 2 and 3 only

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

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

Accounting Multiple Choice Question – 20 December 2023

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

Photo by Olya Kobruseva on Pexels.com

What does the term ‘nominal value of a share’ refer to?

Select ONE answer:

  1. The value that a share is sold by one shareholder to another shareholder for
  2. The price at which a company issues shares to raise money for use within the company
  3. A value chosen by the company when it was set up which is used to value the shares in the Statement of Financial Position
  4. The same value as the average selling price of the goods that the company sells

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 – The nominal price of a share exists so that the shares can be valued in the SOFP. The nominal value of the shares is chosen when the company is set up.
  3. Not correct
  4. Not correct

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