passwella.
Menu

WAEC Financial Accounting 2024 Question 46

Question 46

Company Accounts

Shares which are issued at no cost to existing shareholders in proportion to existing shares held are

  1. A.Founders' shares.
  2. B.Preference shares.
  3. C.Deferred shares.
  4. D.Bonus shares.
Show the answer and explanation

Answer: D (Bonus shares.)

Explanation

Bonus shares are free shares issued from reserves to existing holders.