O-LevelAccountingThe fundamentals of accounting7707/13 · Oct/Nov 2022 · Q241 Mark
A limited company raised funds by issuing ordinary shares, preference shares and debentures. Which statements are correct? 1 Debentures are part of the loan capital. 2 Ordinary shares are part of the equity. 3 Ordinary dividend is paid before debenture interest. 4 Preference shares carry a fixed rate of dividend.
A1, 2 and 3
B1, 2 and 4
C2, 3 and 4
D3 and 4 only
✓ Correct answer
B: 1, 2 and 4
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