An Allotment Account,being a Receivable Account from the Subscribers in a Share

question 38

True/False

An allotment account,being a receivable account from the subscribers in a share issue,is presented under current assets in the statement of financial position.

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Definitions:

Mortgage

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Investment Earnings

The return or income generated from various forms of investments, such as stocks, bonds, or real estate.

Present Value

A financial concept that calculates the current value of a future sum of money or stream of cash flows, given a specific rate of return.