Practicing Success

Target Exam

CUET

Subject

Accountancy

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

Aggregate number and class of shares allotted as fully paid up by way of bonus shares

Correct Answer:

The number and class of shares bought back

Explanation:

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.