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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 20

Q1 | In the case of railway companies rent on leased lines is shown on
  • debit side of revenue A/c
  • credit side of revenue A/c
  • debit side of net revenue A/c
  • credit side of net revenue A/c
Q2 | The acquiree in a business combination is also called a….. company
  • subsidiary
  • parent
  • holding
  • controlling
Q3 | When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares ofRs.100 each, it is a case of ………
  • sub division
  • capital reduction
  • consolidation
  • none
Q4 | Section …… of the Companies Act 2013 deals with the issue of rightshares
  • 62
  • 63
  • 64
  • 68
Q5 | A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956.
  • Partnership
  • Companies
  • Banking companies
  • none of these.
Q6 | A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company puts restriction on the transfer of its shares.
  • Private company
  • Public company
  • Limited companies
  • None of these.
Q7 | A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • Premium
  • Discount
  • Par
  • None of these.
Q8 | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an invitation made by the company to the public for subscribing its shares.
  • Memorandum of association
  • Articles of association
  • Prospectus
  • Table A.
Q9 | The maximum extent to which a company can raise share‐capital is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital.
  • Subscribed
  • Authorized
  • Called
  • Reserve capital.
Q10 | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend.
  • Preference
  • Equity
  • Deferred
  • Sweat equity.
Q11 | Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account.
  • Personal
  • Real
  • Nominal
  • None of these.
Q12 | The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally.
  • 10%
  • 20%
  • 30%
  • None of these.
Q13 | Profit on the re‐issue of forfeited shares is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account.
  • General reserve
  • Capital reserve
  • Capital redemption reserve
  • none of these.
Q14 | Capital reserve will appear on the liability side of the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • Reserves & surpluses
  • Secured loan
  • Unsecured loan
  • Current liabilities.
Q15 | Profit on re‐issue of forfeited shares will appear on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet.
  • Asset side
  • Liability side
  • Debit side
  • Credit side.
Q16 | Debentures are normally paid back after the expiry of the period this is technically called ‐‐‐‐‐‐‐‐‐‐‐‐.
  • Renewal
  • Redemption
  • Conversion
  • Forfeiture
Q17 | Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Creation of liability
  • Discharge of liability
  • Concession of liability
  • None of these.
Q18 | Premium on redemption of debentures account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Personal account
  • Real account
  • Nominal account
  • None of these.
Q19 | After all the debentures are redeemed; the balance in the sinking fund account is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • Capital reserve
  • General reserve
  • Profit and loss account
  • Capital redemption reserve.
Q20 | When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Profit and Loss Account
  • General reserve
  • Capital Reserve
  • Sinking fund
Q21 | For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐‐‐ basis.
  • Ex‐Interest
  • Cum‐Interest
  • Own Debentures basis
  • None of these.
Q22 | When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account.
  • Capital reserve
  • Capital Redemption Reserve
  • Debenture redemption reserve
  • General Reserve.
Q23 | When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • Redemption by drawing a lot
  • Redemption out of capital
  • Redemption out of profit
  • Redemption by conversion.
Q24 | a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Dividend
  • Share capital
  • Interest
  • Debentures.
Q25 | The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act.
  • Section80
  • Section 81
  • Section 79
  • Section 76