Question : Which of the following statements is false?
Option 1: A company can raise funds beyond its Authorised Capital.
Option 2: Dividends declared should be classified in the Balance Sheet as a current liability.
Option 3: Dividends are usually paid as percentage of Paid up Capital.
Option 4: As per the Companies Act, only Preference Shares which are redeemable within 20 years can be issued.
Answer (1)
23rd Jan, 2024
Correct Answer: A company can raise funds beyond its Authorised Capital.
Solution : As per the Companies Act, 2013, a company can only raise funds upto its authorised capital.
Hence the correct answer is option 1.
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