Where There Is a Redemption of Preference Shares 'Out of Profit

question 12

Multiple Choice

Where there is a redemption of preference shares 'out of profit':

• A) The redemption is recorded in the appropriations section of the profit and loss account.
• B) The redemption is recorded as an expense.
• C) The redemption is recorded as a liability and is amortised over a maximum of five years.
• D) The redemption is not recorded in the current period.

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Definitions:

Labeling

The act of identifying or describing someone or something in a specific way, often simplifying complex individuals or ideas into single terms or categories.

Harlow (1958)

Refers to the year psychologist Harry Harlow published his seminal research on maternal-separation, dependency needs, and social isolation experiments with rhesus monkeys, highlighting the importance of caregiving and companionship.

Cloth

A flexible material made by weaving, knitting, pressing, or bonding fibers together, used for making items like clothing, drapery, or bedding.

Wire Surrogate

Reference to an experiment in developmental psychology by Harry Harlow, which showed that infant monkeys preferred a cloth-covered surrogate mother to a wire one, even when the latter provided food, highlighting the importance of comfort and security in attachment.