Accounting - Study Mode
[#2641] Which of the following statements is not correct:
Correct Answer
(A) Bonus shares cannot be issued except out of the profits of the company
[#2642] Buy back of equity shares in any financial year shall not exceed
Correct Answer
(C) 25% of fully paid equity share capital
[#2643] As applied in Accounting, depreciation:
Correct Answer
(D) is an accounting process which allocates to cost of long-life asset to various accounting periods
[#2644] Advertising expenses done on launching of a new product are treated as
Correct Answer
(C) Deferred Revenue Expenditure
[#2645] The Debt Equity ratio of a company for three consecutive years was as follows: Year Debt Equity Ratio 1989 $$frac{{399}}{{28}}$$ 1990 $$frac{{493}}{{34}}$$ 1991 $$frac{{624}}{{42}}$$ The aforesaid ratios show:
Correct Answer
(C) That the interests of creditors are not safe in the company