WAEC Accounting 2012 Objective — Question 39
Question 39 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.
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Shares of ₦3 nominal value were issued at a price of ₦4. The difference of ₦1 is a
- A. commission
- B. discount
- C. premiumCorrect
- D. bonus
Explanation
When a share is issued at a value higher than its nominal value, such share is issued at a premium. The reverse is issuing at discount.
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