In the case of a share issue being oversubscribed, excess application monies:
A. will always be refunded to applicants.
B. may be used to reduce future amounts owing on allotment if the shares are issued on a pro rata basis.
C. must be recorded as revenue in the current financial period.
D. must be placed in a trust account until a refund is requested by applicants.
Answer: B. may be used to reduce future amounts owing on allotment if the shares are issued on a pro rata basis.
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