Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

Which of the following is a mandatory disclosure related to share capital for a period of 5 years preceding the balance sheet date?

Options:

Rights, preferences, and restrictions attaching each class of shares

The number and class of shares bought back

The number and amount of share authorized

Reconciliation of the number of shares outstanding at the beginning

Correct Answer:

The number and class of shares bought back

Explanation:

The correct answer is option 2- The number and class of shares bought back.

Over the period of the last 5 years prior to the preparation date of the balance sheet, the following information needs to be disclosed:
(a) Shares reserved under contracts/commitments.
(b) The number and class of shares bought back.
(c) The number and class of shares allotted for consideration other than cash and bonus shares.