[Solved] Capitalization of reserves means

Capitalization of reserves means

a) Creation of provision

b) Capital Reserve

c) Declaration of dividend

d) Issue of bonus shares

Answer: (d) Capitalization of reserves means Issue of bonus shares. To Capitalized profit of the Company and to provide additional shares given to the current shareholders without any additional cost, on the proportionate basis of Shares held by the members of the Company.

More MCQ and Answers on Auditing

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