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WAEC Financial Accounting 1997 Question 45

Question 45

Company Accounts

When a share is sold for less than its nominal value, the difference is called

  1. A.discount
  2. B.reserve
  3. C.premium
  4. D.loss
  5. E.goodwill.
Show the answer and explanation

Answer: A (discount)

Explanation

Issuing below nominal value is issuing at a discount.