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Question : A company can accept calls in advance, if authorised by:

 

Option 1: Shareholders

Option 2: Board of Directors

Option 3: Articles of Association

Option 4: Memorandum of Association


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Articles of Association


Solution : Calls in advance are excess funds that the corporation has received and has been called up. A company may take calls in advance from its shareholders if permitted by its articles of association. When a business receives cash like this, it has to credit the calls-in-advance account.

 

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