When Shares Are Allotted,or a Call Made on Them,allotment and Call

question 50

Multiple Choice

When shares are allotted,or a call made on them,allotment and call accounts are created respectively.What is the nature of these accounts and how are they to be disclosed in the financial statements?

• A) The accounts are similar in nature to an account receivable and are to be disclosed in the balance sheet as a current asset.
• B) The accounts are similar to a future income benefit and are to be separately disclosed as assets in the balance sheet.
• C) The accounts are similar to an account receivable and are disclosed in the balance sheet as a reduction against share capital.
• D) The accounts are in the nature of a deferred income and are disclosed as a provision for future cash inflows in the balance sheet.
• E) None of the given answers.

Explain the concept and purpose of withholding in the tax system.

Determine the standard deduction applicable under specific conditions.

Identify the implications of filing an automatic extension on penalties associated with late tax payments.

Understand the core practices and principles of servant leadership.

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Definitions:

External Data Sources

Information gathered from outside the organization, such as market research, government statistics, or industry reports, which supports decision-making processes.

Buying Queries

Questions or considerations potential customers may have before making a purchase decision.

Internal Data Sources

Data collected from within an organization, used for decision-making, including sales records, financial data, and customer interactions.

External Data Sources

Sources of data that come from outside an organization, providing additional insights or information that aids in decision-making.