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State true or false with reason. Face value of shares and market value of shares is always same. - Book Keeping and Accountancy

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Question

State true or false with reason.

Face value of shares and market value of shares is always same.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is False.

Face value of shares means issue price of shares while market value of shares means trading price of shares at stock exchange. Face value of shares remains same and fixed. However, market price changes as per the performance of the company. Hence face value and market value of shares are not same.

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Accounting for Share Capital
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Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 339]

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Balbharati Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 8 Company Accounts - Issue of Shares
Exercise 8.1 (Objective Questions) | Q 1. (C) 5. | Page 339

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