BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Issued at Discount
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Issued at Premium
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Issued at Par
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None of the Above
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Detailed explanation-1: -Excess of issue price of shares over its face value is termed as securities premium.
Detailed explanation-2: -Issue of Shares at Premium: When shares are issued at a price higher than the face value then it is called the issue of shares at a premium. The excess of issue price over the face value is the amount of premium.
Detailed explanation-3: -The issue of shares at premium refers to the issue of shares at a price higher than the face value of the share. In other words, the premium is the amount over and above the face value of a share.
Detailed explanation-4: -When the issue price is excess than the face value of shares, it is a case of shares issued at premium.
Detailed explanation-5: -When the shares are issued at a price less than the face value of the share, it is known as shares issued at discount.