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Shares issued below nominal value are referred to as shares at

Accounts - Principles of Accounts
WAEC 2014

Shares issued below nominal value are referred to as shares at

  • A. premium
  • B. discount
  • C. face value
  • D. cumulative value
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Correct Answer: Option B
Explanation

Issue of Shares at Discount Definition: When a share is issued by the company at a price that is less than the face value of the share, the share is said to be issued at a discount.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts