Question

cash transaction is not involved in the issue of............. shares. option:- a) right b)bonus c) original d) bonded​

Answer 1

Answer:

BONUS SHARES

Explanation:

Issuing bonus shares does not involve cash flow. It increases the company's share capital but not its net assets.

Answer 2

Cash transactions aren't involved while issuing the Bonus Shares.

Why do cash transactions aren't involved while issuing the Bonus Share?

• Cash transactions aren't involved in the case of bonus shares.
• Bonus shares are an issue of additional shares which is distributed to current shareholders of the company.
• According to the percentage of the existing shareholder's ownership the shares are distributed.
• The share that is involved in issuing cash transactions are right shares, original shares, and bonded shares.