Classical

Financial and Management Accounting - Financial and Management Accounting Practice Questions

51:  
Which of the following statements is not correct?
A.
Law creates a company and law only can dissolve it.
B.
Company's existence is altogether independent of the life of its members.
C.
A company can buy its shares under certain conditions.
D.
A shareholder can incur any debt so as to bind the company.
 
 

Option: D

Explanation :


52:  

Which of the following statements is correct?

A.
Capital redemption reserve account cannot be utilised for issuing fully paid bonus shares.
B.
Redemption of preference shares cannot be made out of the fresh issue of debentures.
C.
An amount equal to redemption of preference shares out of the profits must be transferred to General Reserve.
D.
A company can issues irredeemable preference shares.
 
 

Option: B

Explanation :




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