Retirement of shares:

Question

Quizplus · Accepted Answer

Retirement of shares results in the reduction of the number of issued shares, and it is permissible under the law if it does not harm the interests of the shareholders. The accounting treatment of retired shares is similar to treasury shares. Therefore, option D is the correct answer. Option A is incorrect because it only addresses the reduction of issued shares. Option B is partially correct as it mentions the requirements for retirement of shares legally, but it does not mention the reduction of the number of issued shares. Finally, option E is incorrect because it contains all options, including those that are not accurate, such as option C.

Retirement of Shares