Financial Accounting 2 Set 10

Bachelor of Business Administration (BBA)

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This set of Financial Accounting 2 Multiple Choice Questions & Answers (MCQs) focuses on Financial Accounting 2 Set 10

Q1 | Debentures can be issued only
  • at par
  • at discount
  • premium
  • any of the above
Answer: any of the above
Q2 | If the minimum subscription is not received by the company, then the refund of applicationmoney should be made within ______ days.
  • 7
  • 9
  • 10
  • 22
Answer: 10
Q3 | Cancelation of shares mean
  • reissue of shares
  • valuation of shares
  • forfeiture of shares
  • allotment of shares
Answer: forfeiture of shares
Q4 | To issue shares on premium mean
  • issue on face value of shares
  • issue on more than face value of shares
  • issue on less than face value of shares
  • initial public offer
Answer: issue on more than face value of shares
Q5 | To issue shares on Par mean
  • issue on face value of shares
  • issue on more than face value of shares
  • issue on less than face value of shares
  • initial public offer
Answer: issue on face value of shares
Q6 | To issue shares on Discount mean
  • issue on face value of shares
  • issue on more than face value of shares
  • issue on less than face value of shares
  • initial public offer
Answer: issue on less than face value of shares
Q7 | Forfeited shares to become ________
  • property of the government
  • property of the company
  • property of the shareholders
  • property of all the shareholders
Answer: property of the company
Q8 | Debentures represent the _________
  • manager's share in a business
  • investment by shareholders in a business
  • long term borrowing of a business
  • none of the above
Answer: long term borrowing of a business
Q9 | Discount on issue of debentures is shown under the heading in a company's Balance Sheet_______
  • fixed assets
  • loans and advances
  • investment
  • miscellaneous expenditure
Answer: miscellaneous expenditure
Q10 | The excess price received over the par value of shares, should be credited __________.
  • calls-in-advance account
  • share capital account
  • securities premium account
  • discount on issue of shares account
Answer: securities premium account
Q11 | The Securities Premium amount may be utilized by a company for __________.
  • writing off any loss on sale of fixed asset
  • writing off any loss of revenue nature
  • writing off the expenses/discount on the issue of debentures
  • none of these
Answer: writing off the expenses/discount on the issue of debentures
Q12 | When shares are forfeited, the share capital account is debited with ________ and theshare forfeiture account is credited with __________.
  • paid-up capital of shares forfeited; called up capital of shares forfeited
  • called up capital of shares forfeited; calls in arrear of shares forfeited
  • called up capital of shares forfeited; amount received on shares forfeited
  • none of these
Answer: called up capital of shares forfeited; amount received on shares forfeited
Q13 | As per the SEBI guidelines, on issue of shares, the application money should not be lessthan
  • 2.5% of the nominal value of shares
  • 2.5% of the issue price of shares
  • 25% of the issue price of shares
  • 25% of the nominal value of shares
Answer: 25% of the issue price of shares
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