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Commerce · Q564

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 564

Q564

Which of the following statements is not true:

A.
To write off goodwill out of retained income is neither a source nor an application of funds
B.
To declare dividend on equity share capital is an application of funds
Answer
C.
To issue bonus shares is not a source of funds
D.
Payment to creditors does not affect the amount on net working capital

Answer: Option B

Solution

Answer: Option B
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