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Which of the following statement is false?
  • a)
    The bonus shares shall not be issued in lieu of dividends.
  • b)
    The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.
  • c)
    In case of bonus issue there is no cash flow.
  • d)
    Issue of bonus shares does not affect the market value of the company.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is false?a)The bonus shares shall not...
Explanation:


  • A: The bonus shares shall not be issued in lieu of dividends. - This statement is true. Bonus shares are issued to existing shareholders as a reward and do not replace dividends.

  • B: The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same. - This statement is false. Once a company announces a bonus issue, it cannot withdraw the decision.

  • C: In case of bonus issue there is no cash flow. - This statement is true. Bonus shares are issued without any cash outflow as they are issued to existing shareholders.

  • D: Issue of bonus shares does not affect the market value of the company. - This statement is false. The issue of bonus shares can impact the market value of the company as it increases the number of shares outstanding.


Therefore, the false statement among the given options is B: The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.
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Which of the following statement is false?a)The bonus shares shall not be issued in lieu of dividends.b)The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.c)In case of bonus issue there is no cash flow.d)Issue of bonus shares does not affect the market value of the company.Correct answer is option 'B'. Can you explain this answer?
Question Description
Which of the following statement is false?a)The bonus shares shall not be issued in lieu of dividends.b)The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.c)In case of bonus issue there is no cash flow.d)Issue of bonus shares does not affect the market value of the company.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 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 statement is false?a)The bonus shares shall not be issued in lieu of dividends.b)The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.c)In case of bonus issue there is no cash flow.d)Issue of bonus shares does not affect the market value of the company.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is false?a)The bonus shares shall not be issued in lieu of dividends.b)The company which has once announced the decision of its Board recommending a bonus issue can withdraw the same.c)In case of bonus issue there is no cash flow.d)Issue of bonus shares does not affect the market value of the company.Correct answer is option 'B'. Can you explain this answer?.
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