The Appropriate Account to Record Any Excess Proceeds Received and Retained

question 10

Multiple Choice

The appropriate account to record any excess proceeds received and retained (not refunded) by a company from an oversubscription to a share offer application,is the:

• A)Share issue costs account
• B)Forfeited Shares account
• C)Share capital account
• D)Calls in advance account.

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Definitions:

Overjustification Effect

The phenomenon where providing excessive external rewards for an already internally rewarding activity leads to a decrease in intrinsic motivation.

Overjustification Effect

The phenomenon in which rewarding a person for performing an activity actually decreases their intrinsic motivation to perform that activity.

Externality Hypothesis

A theory suggesting that individuals attribute their success to internal factors and failures to external factors, often explored within the context of social psychology and self-perception.

Principle Homeostasis

The regulatory principle that organisms maintain a stable internal environment despite external changes.