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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R) : Capital profit cannot be used for distribution as dividend to the shareholders. In the context of the above two statements, which one of the following is correct ?
Codes : (2 marks)
is correct, but (R) is wrong.
Both (A) and (R) are correct.
(A) is wrong, but (R) is correct.
Both (A) and (R) are wrong.
By: santosh ProfileResourcesReport error
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