Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

For what purpose equity shares can not be issued by the company?

Options:

Cash receipts

Purchase of fixed assets

Redemption of 10% debentures

Distribution of dividend

Correct Answer:

Distribution of dividend

Explanation:

Distribution of Dividend is a sum of money paid regularly by a company to its shareholders out of its profits (or reserves).