General Studies · Share Capital and Reserves
In corporate accounting and capital maintenance, which of the following represents a permissible use of the Securities Premium Account (or Share Premium Account)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Settling debts with unsecured creditors prior to a voluntary liquidation
- 2Buying back shares using cash when the company has no distributable profits
- 3Paying cash dividends to shareholders during a period of low liquidity
- 4Writing off preliminary expenses of the company✓
Correct answer
Writing off preliminary expenses of the company
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