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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 11

Q1 | The company in which the liability of members is liable to pay the agreed amount at thetime of winding up is called as …………..
  • Unlimited Company
  • Company limited by shares
  • Company limited by guarantee
  • Liquidating Company
Q2 | A company in which the transferability of share is restricted is called as …………..
  • Government Company
  • Private Company
  • Public Company
  • Foreign Company
Q3 | ……….is the first stage in the formation of a public company
  • Promotion
  • Incorporation
  • Capital Subscription
  • Commencement
Q4 | Authorised capital is called as……………
  • Reserve capital
  • Nominal Capital
  • Capital Reserve
  • Subscribed capital
Q5 | …………..is that portion of capital which is called up only on winding up of the company.
  • Authorised Capital
  • Issued capital
  • Subscribed capital
  • Reserve capital
Q6 | In case of ……………..preference shares, the arrears of dividend are carried forward and paidout of the profits of the subsequent years.
  • Participating
  • Convertible
  • Cumulative
  • Redeemable
Q7 | …………..shares are repayable after the expiry of the fixed period or at the option of thecompany.
  • Participating
  • Convertible
  • Cumulative
  • Redeemable
Q8 | A bundle of fully paid shares is called……………..
  • Stock
  • Sweat Equity
  • Warrant
  • None of these
Q9 | IPO stands for ………………
  • Initial Private Offer
  • International Public Offer
  • Initial Public Offer
  • International Private Offer
Q10 | In …... the company offers the investors an opportunity to bid collectively.
  • Private Placement
  • Offer for sale
  • Book building
  • IPO
Q11 | As per the companies Act, the interest on calls in advance is …………..
  • 10%
  • 6%
  • 5%
  • 7%
Q12 | The rate of interest on Calls in arrears as per Companies Act is …………
  • 10%
  • 6%
  • 5%
  • 7%
Q13 | The shares of a company can be issued at …………..
  • Par
  • Premium
  • Discount
  • All of these
Q14 | Share application account is a ………..
  • Real Account
  • Nominal Account
  • Impersonal Account.
  • Personal Account
Q15 | The rate of discount on shares cannot exceed ……….
  • 10%
  • 5%
  • 6%
  • 7%
Q16 | A newly established company cannot issue shares at ……
  • Par
  • Premium
  • Discount
  • All of these
Q17 | ………..of total issued amount of capital is called minimum subscription.
  • 75%
  • 90%
  • 95%
  • 80%
Q18 | The rate of discount should not exceed ……………. Of nominal vale of shares.
  • 10%
  • 5%
  • 6%
  • 7%
Q19 | The minimum application money to be paid by an applicant must not be less than …….as perCompanies Act.
  • 10%
  • 5%
  • 15%
  • 20%
Q20 | The excess price received on the par value of shares should be credited to ………….
  • Calls in advance A/c
  • Reserve Capital A/c
  • Security Premium A/c
  • None of these
Q21 | Underwriting commission is classified as …………..
  • Capital Loss
  • Capita Expenditure
  • Revenue expenditure
  • Deferred revenue expenditure
Q22 | Compulsory cancellation of shares by the company\y due to non‐payment of allotment orcall money is called …………….
  • Surrender of Shares
  • Buy back of shares
  • Forfeiture of shares
  • All of these
Q23 | The profit on reissue of forfeited shares is transferred to ………
  • General reserve
  • Capital Redemption reserve
  • Capital reserve
  • Investment Allowance reserve
Q24 | Preference shareholders are…………
  • Debtors of the company
  • Creditors of the company
  • Owners of the company
  • None of these
Q25 | The shares firstly offered to the existing shareholders are called as ………….
  • Right shares
  • Bonus shares
  • Ordinary shares
  • None of these