Question
Accountancy Question on Accounting for Share and Debenture Capital
Arrange the following steps in the correct sequence of the life of a company:
(A) Commencement of Business
(B) Incorporation
(C) Promotion
(D) Floatation
A
(A), (B), (C), (D)
B
(A), (C), (B), (D)
C
(B), (A), (D), (C)
D
(C), (B), (D), (A)
Answer
(C), (B), (D), (A)
Explanation
Solution
The correct sequence in the formation of a company is (C) Promotion → (B) Incorporation → (D) Floatation → (A) Commencement of Business.
Hence, the correct answer is Option 4.