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The Statement Relating to Share Dividends Bonus Share Issues)that Is

Question 35

Multiple Choice

The statement relating to share dividends bonus share issues) that is incorrect is:


A) They reduce total shareholder's equity
B) They involve a transfer of retained earnings or reserves to share capital
C) Shareholders are provided with additional shares without cost
D) A bonus issue can only be made if the company has sufficient reserves

Correct Answer:

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