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Commerce · Q552

Accounting

Graduate and Post Graduate · Commerce · question 552

Q552

Read the following Assertion (A): ''Share premium cannot be utilised for any purpose other than mentioned in Sec. 78 of the Companies Act." Reason (R): "Share premium is a capital receipt." Select the correct answer:

A.
Both A and R are True and R is the correct explanation of A
B.
Both A and R are true but R is not a correct explanation of A
Answer
C.
A is true but R is false
D.
A is false but R is true

Answer: Option B

Solution

Answer: Option B
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