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For which one or more of the following reasons could a balance in the securities premium be applied?
(a) To issue bonus shares.
(b) For distribution to shareholders as dividend.
(c) To write down the value of assets, particularly when they are impaired.
(d) To write off expenses of and commission on issuing the same shares
Select the correct answer from the options given below
(a) To issue bonus shares.
(b) For distribution to shareholders as dividend.
(c) To write down the value of assets, particularly when they are impaired.
(d) To write off expenses of and commission on issuing the same shares
Select the correct answer from the options given below
- a)(c) & (d)
- b)(a) & (b)
- c)(b) & (c)
- d)(a) & (d)
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
For which one or more of the following reasons could a balance in the ...
Reasons for applying balance in securities premium:
- To issue bonus shares: The balance in securities premium can be utilized to issue bonus shares to existing shareholders as a reward for their loyalty and support to the company.
- To write off expenses of and commission on issuing the same shares: The balance in securities premium can be used to cover the expenses and commissions incurred during the process of issuing shares.
Therefore, the correct answer is option (d): (a) & (d)
Most Upvoted Answer
For which one or more of the following reasons could a balance in the ...
Reasons for applying a balance in securities premium:
Issuing bonus shares:
One reason for applying a balance in the securities premium is to issue bonus shares. This allows a company to reward its shareholders by issuing additional shares without requiring them to make any additional payment.
Writing off expenses and commissions:
Another reason for applying a balance in the securities premium is to write off expenses and commission on issuing the same shares. This helps the company offset the costs associated with issuing shares, ensuring that these expenses do not impact the company's financial performance.
Explanation of the correct answer:
In this case, option 'D' is the correct answer because it includes both of the above reasons for applying a balance in the securities premium. By issuing bonus shares and writing off expenses and commissions, a company can effectively utilize the securities premium balance for the benefit of its shareholders and financial stability.
Issuing bonus shares:
One reason for applying a balance in the securities premium is to issue bonus shares. This allows a company to reward its shareholders by issuing additional shares without requiring them to make any additional payment.
Writing off expenses and commissions:
Another reason for applying a balance in the securities premium is to write off expenses and commission on issuing the same shares. This helps the company offset the costs associated with issuing shares, ensuring that these expenses do not impact the company's financial performance.
Explanation of the correct answer:
In this case, option 'D' is the correct answer because it includes both of the above reasons for applying a balance in the securities premium. By issuing bonus shares and writing off expenses and commissions, a company can effectively utilize the securities premium balance for the benefit of its shareholders and financial stability.
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For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct answer is option 'D'. Can you explain this answer?
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For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct 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 For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct 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 For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct answer is option 'D'. Can you explain this answer?.
For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct 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 For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct 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 For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct answer is option 'D'. Can you explain this answer?.
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ample number of questions to practice For which one or more of the following reasons could a balance in the securities premium be applied?(a) To issue bonus shares.(b) For distribution to shareholders as dividend.(c) To write down the value of assets, particularly when they are impaired.(d) To write off expenses of and commission on issuing the same sharesSelect the correct answer from the options given belowa)(c) & (d)b)(a) & (b)c)(b) & (c)d)(a) & (d)Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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