A-LevelAccountingPreparation of financial statements9706/12 · May/June 2017 · Q171 Mark
Which statement about ordinary shares is correct?
Adividends on ordinary shares are an appropriation of profit
Bdividends on ordinary shares are paid at the same rate each year
Cordinary shares are never issued at a premium
Dthe holders of ordinary shares are creditors of a company
✓ Correct answer
A: dividends on ordinary shares are an appropriation of profit
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.
Sign up free →