[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

  1. Which among the following is not a right of company auditors.
  2. Test checking is done when there is an effective system of _________
  3. Test checking means
  4. Audit working papers are
  5. Current audit file consists of
  6. ____ begins where accounting ends.
  7. ________audit is compulsory for joint stock companies.
  8. Treating revenue expenditure as capital expenditure is an example of error of
  9. Financial statements are prepared by
  10. Preliminary expanses not written off are treated as

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