Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
To whom a company can issue shares for consideration other than cash?
Options:
Issue of shares to Promoters
Issue of shares for purchase of assets
Either option 1 or 2
Both of these
Correct Answer:
Both of these
Explanation:
A company can issue shares not only for cash but also for a consideration other than cash. The shares of a company can be issued for a consideration other than cash to vendors and promoters also.