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Which of the following statements is false?
  • a)
    Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant call
  • b)
    Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant call
  • c)
    Interest on calls-in-advance is paid at the rate of 6% p.a.
  • d)
    Payment of interest on calls-in-advance is at the discretion of the company
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is false?a)Interest on calls-in-adva...
False Statement: Payment of interest on calls-in-advance is at the discretion of the company.

Explanation:
Interest on calls-in-advance is a form of interest paid by a company to its shareholders who have paid their call money in advance. The purpose of paying such interest is to compensate shareholders for the time value of their money.

The correct statements regarding interest on calls-in-advance are:

a) Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant call.
b) Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant call.
c) Interest on calls-in-advance is paid at the rate of 6% p.a.

However, it should be noted that payment of interest on calls-in-advance is not mandatory and is at the discretion of the company. The company may decide not to pay any interest or may pay a lower rate of interest depending on its financial position and other factors.

In conclusion, option D is the false statement as payment of interest on calls-in-advance is not mandatory and is at the discretion of the company.
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Which of the following statements is false?a)Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant callb)Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant callc)Interest on calls-in-advance is paid at the rate of 6% p.a.d)Payment of interest on calls-in-advance is at the discretion of the companyCorrect answer is option 'D'. Can you explain this answer?
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Which of the following statements is false?a)Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant callb)Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant callc)Interest on calls-in-advance is paid at the rate of 6% p.a.d)Payment of interest on calls-in-advance is at the discretion of the companyCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is false?a)Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant callb)Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant callc)Interest on calls-in-advance is paid at the rate of 6% p.a.d)Payment of interest on calls-in-advance is at the discretion of the companyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is false?a)Interest on calls-in-advance is paid from the date of receipt of advance to the date of relevant callb)Interest on calls-in-advance is paid from the date of receipt of advance to the date of appropriation to the relevant callc)Interest on calls-in-advance is paid at the rate of 6% p.a.d)Payment of interest on calls-in-advance is at the discretion of the companyCorrect answer is option 'D'. Can you explain this answer?.
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