Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

How should calls be made on shares within the same class, as per the provided information?

Options:

Calls must be made based on shareholder preferences

Calls must be made on a uniform basis

Calls must be made at different times for diversity

Calls can be made at any time

Correct Answer:

Calls must be made on a uniform basis

Explanation:

Calls on shares refer to the process of requesting shareholders to pay the remaining amount on their subscribed shares. When shares of the same class are issued, it's important to treat all shareholders equally and fairly. Making calls on a uniform basis ensures that all shareholders within the same class are treated consistently and receive the same communication and requirements. Uniformity in making calls prevents any bias or preference among shareholders and maintains a level playing field. This practice also helps in ensuring transparency and compliance with regulations, as every shareholder receives the same treatment when it comes to the call-making process.