Q172
The bonus issue is permitted to be made out of __________ and premium collected in cash.
A.
free reserves
AnswerB.
free interest
C.
free bonus
D.
free cash dividend
Answer: Option A
Solution
Answer: Option A
Solution:
The bonus issue is permitted to be made out of free reserves and premium collected in cash. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.