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Commerce · Q1872

Accounting

Graduate and Post Graduate · Commerce · question 1872

Q1872

Which of the following statements is incorrect?

A.
When proposed dividend does not exceed 10%. It is not obligatory on the company to transfer any profit to its reserve
B.
Capital redemption reserve can be utilised for writing off miscellaneous expenses and losses
Answer
C.
Dividends is not payable on the calls paid in advance by shareholders
D.
Reserves created by revaluation of fixed assets are not permitted to be capitalised

Answer: Option B

Solution

Answer: Option B
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