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When No-Par Share Is Issued

Question 80

Multiple Choice

When no-par share is issued:


A) The entire amount received is credited to the Share Premium account.
B) The issue price is credited to the Share Capital account.
C) There is no legal capital created because there is no par or stated value.
D) The transaction usually involves only an exchange for non-cash assets or services, since the share has no value on the share exchanges.

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