When No-Par Share Is Issued

question 104

Multiple Choice

When no-par share is issued:

• A) The entire amount received is credited to the Share Premium account.
• B) The issue price is credited to the Share Capital account.
• C) There is no legal capital created because there is no par or stated value.
• D) The transaction usually involves only an exchange for non-cash assets or services, since the share has no value on the share exchanges.

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Definitions:

Standard Normal Distribution

A statistical distribution with a mean of 0 and a standard deviation of 1, where data fits a specific pattern that is symmetrical around the mean.

Chi-squared Distribution

A probability distribution that arises in statistics when estimating how closely an observed distribution matches an expected distribution.

Interval Data

A type of data measurement where the order of the data points is meaningful and the difference between data points is consistent and measurable.

Nominal Data

Information grouped into categories without an inherent numerical value or order, such as colors or gender.