Q$.1$ B$)$ TRUE OR FALSE $($any $10)$

$(10$ marks$)$

Loose tools are shown under current liabilities.

Short term loan is the loan due for more than $5$ years.

Calls in arrears are added to subscribed capital.

The document inviting offer from the public for subscription is a share certificate.

Rate of underwriting commission in case of debentures cannot exceed $10\%.$

Issue of debentures must be sanctioned by the state government.

Capital redemption reserve is used for payment of dividend

Capital reserve is a divisible profit.

Preference shareholders have voting rights.

Preference shares may be convertible into equity shares.

For computation of pre$-$incorporation profit advertisement expenses are allocated in time ratio.

Profit prior to incorporation is available for payment of dividend.