Multiple Choice Questions on Issue of shares at a price higher than its face value is called ........ for UPSC EPFO Exam Preparation

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Multiple Choice Questions

Issue of shares at a price higher than its face value is called ........

General Accounting Principles Accounting for Shares
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    Issue of shares at a price higher than its face value is called :

    Issue at a Profit

    Incorrect Answer

    Issue at a Premium

    Correct Answer

    Issue at a Discount

    Incorrect Answer

    Issue at a Loss

    Incorrect Answer
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    Explanation:

    Issue of Shares at Premium:

    When shares are issued at a price higher than the face value then it is called as the issue of shares at premium. The excess of issue price over the face value is the amount of premium. The premium on issue of shares is treated as revenue profits.

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