Question

Which of the following statements is true with regard to

Q: Answer-Which of the following statements is true with regard to declaring and issuing of Bonus Shares?

when a company issues bonus shares, it typically utilizes its reserves or retained earnings to capitalize the shares. This means that the company is essentially converting a part of its reserves into share capital, which could result in a decrease in the reserves and surplus on the balance sheet.

declaring and issuing of Bonus Shares?

A Assets are transferred from the company to the shareholders.

B A Bonus issue results in decrease in reserves and surplus.

C A Bonus issue is same as declaration of dividends.

D A Bonus issue results devaluation of company.

E None of the above

Practice Next

More The Management Basics Questions

Which state received first prize from center for implementation of e-tendering process?
______________ committee has recommended that NRIs who harass or desert their wives could face cancellation of passport.
Who was appointed as the new CEO of Twitter in 2023?
The Krishna Raja Sagar Dam is constructed on which river?
Bandipur National Park is located in which Indian state?
Sulochana Chavan passed away at the age of 92 years she was famous?
Recently Coast Guards of India and their Japanese counterpart conducted joint naval exercise near:
The currency of Thailand is:
National Investment and Infrastructure Fund (NIIF) was created to enhance infrastructure funding with a corpus of:
Koradi power plant is located in-

Which of the following statements is true with regard to

Solution