The Appropriate Account to Record Any Excess Proceeds Received and Retained

question 21

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:

Custom

A traditional and widely accepted way of behaving or doing something specific to a particular society, place, or time.

Apparent Authority

The appearance or assumption of authority given to an agent, employee, or representative by the actions or statements of the principal, leading third parties to believe the agent has such authority.

Actual Authority

The express and implied powers given to an agent by a principal, allowing the agent to act on behalf of the principal.

Conduct

The manner in which a person behaves, especially in a particular place or situation.