TRUE/FALSE. Write T if the statement is true and F if the statement is false 21) According to AASB 132, the costs of issuing shares are expensed as incurred. 22) When a shareholder is permitted to sell his or her right to participate in the purchase of shares in a new issue it is known as a non-renounceable rights issue 23) A debt instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its equities 24) A request by a company to its shareholders to make a further payment on the outstanding balance of a partly paid share is known as a call. 25) Proprietary companies have the advantage of being able to invite the public to invest in them through the subscription to share or debt capital. 26) When an investor does not pay the calls by the due dates the company, ifits constitution so authorises, may forfeit the shares. 27) An invitation to the public by a company to subscribe to its shares is called a constitution 28) A company may, in its constitution, limit the number of shares the directors can issue. 29) When debentures are redeemed, the general journal entry includes a credit to the debenture liability account. 30) Allotment is an offer by a company to potential investors to apply for shares in the company 31) The statement 32) Providers of debt capital form part of the owners of a company 33) The right to receive payments at agreed dates is a typical feature of debt. l position is also known as the profit and loss statement. the 34) A charge over specific property of the company which restricts the disposal of that property except with the consent of the lender is referred to as a floating charge. 35) The term "securities" covers shares, debt and accounts receivable. 36) The administration of the Corporations Act is the responsibility of the ASX 37) A bonus issue represents to right to buy a certain number of shares in the company at some fixed time in the future. 38) An under subscription is the situation that occurs when there are applications for more shares than are available for purchase. 39) 40) Limited liability refers to the liability of each member of a company with share capital to contribute up to the amount, if any, unpaid on the shares if called u pon to do so