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How should a company treat monies in the securities premium account?
  • a)
    Distribute them as dividends to shareholders.
  • b)
    Treat them as free reserves for future expenses.
  • c)
    Maintain them with the same sanctity as share capital.
  • d)
    Invest them in high-risk ventures for higher returns.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
How should a company treat monies in the securities premium account?a)...
Monies in the securities premium account must be maintained with the same sanctity as share capital. These funds are in the nature of capital reserve and should not be treated as free reserves or distributed as dividends.
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How should a company treat monies in the securities premium account?a)Distribute them as dividends to shareholders.b)Treat them as free reserves for future expenses.c)Maintain them with the same sanctity as share capital.d)Invest them in high-risk ventures for higher returns.Correct answer is option 'C'. Can you explain this answer?
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How should a company treat monies in the securities premium account?a)Distribute them as dividends to shareholders.b)Treat them as free reserves for future expenses.c)Maintain them with the same sanctity as share capital.d)Invest them in high-risk ventures for higher returns.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How should a company treat monies in the securities premium account?a)Distribute them as dividends to shareholders.b)Treat them as free reserves for future expenses.c)Maintain them with the same sanctity as share capital.d)Invest them in high-risk ventures for higher returns.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How should a company treat monies in the securities premium account?a)Distribute them as dividends to shareholders.b)Treat them as free reserves for future expenses.c)Maintain them with the same sanctity as share capital.d)Invest them in high-risk ventures for higher returns.Correct answer is option 'C'. Can you explain this answer?.
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