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Q . 1 B ) TRUE OR FALSE ( any 1 0 ) ( 1 0 marks ) Loose tools are shown under current liabilities.

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.
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