Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Which capital of the company is stated in the Memorandum of Association(MOA) of the company?
Options:
Issued capital
Subscribed capital
Called up capital
Nominal capital
Correct Answer:
Nominal capital
Explanation:
Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association. It is also called Nominal or Registered capital.