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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 12

Q1 | The security premium account is shown in the balance sheet under the head……….
  • Share capital
  • Reserves & Surplus
  • Secured loans
  • Current liabilities
Q2 | ………..should be deducted from the share capital to determine the paid up capital.
  • Security premium
  • Calls in advance
  • Calls in arrears
  • Discount on issue
Q3 | The share capital account is debited with …………while forfeiting shares
  • Calls in arrears
  • Paid up capital
  • Called capital
  • Issued capital
Q4 | On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been receivedby the company, the share capital account should be credited by ……
  • Rs. 20
  • Rs. 16
  • Rs. 14
  • Rs. 6
Q5 | Balance of forfeited share is …….
  • Revenue Reserve
  • Capital Reserve
  • Secret Reserve
  • Security Premium
Q6 | When shares are issued at a price higher than their face value, it is called issue at…………..
  • Par
  • Premium
  • Discount
  • None of these
Q7 | The shares of a company only can be forfeited after giving a ………days notice
  • 21
  • 14
  • 7
  • 30
Q8 | The forfeited shares can be reissued at …………
  • Par
  • Premium
  • Discount
  • All of these
Q9 | Discount on reissue of forfeited shares should not exceed ………….
  • Amount forfeited
  • Face value
  • Issued price
  • Market price
Q10 | Preference shares cannot be redeemed at ………..
  • Par
  • Premium
  • Discount
  • All of these
Q11 | Preference shares can be redeemed by………….
  • Fresh issue of shares
  • Profit
  • Partly out of fresh issue and partly out of profit.
  • All of these
Q12 | …………… preference shares can be redeemed
  • Fully paid
  • Partly paid
  • Both A and B
  • None of these
Q13 | Profit available for dividend distribution is called ………….
  • Capital profit
  • Divisible profit
  • Capital Reserve
  • None of these
Q14 | Which of the following is an example for capital profit?
  • Capital Reserves
  • Security premium
  • Forfeited shares
  • All of these.
Q15 | Which of the following is an example for divisible profit?
  • General Reserve
  • Security premium
  • Forfeited shares
  • All of these.
Q16 | In case of redemption out f profit, an amount equal to face value of shares so redeemedshould be transferred to …………
  • Security premium
  • Capital Redemption Reserve
  • Dividend Equalization Reserve
  • None of these
Q17 | Capital Redemption Reserve Account can be utilized for………
  • Writing off past losses
  • Issuing partly paid bonus shares
  • Writing off capital losses
  • Issuing fully paid bonus shares
Q18 | The allotment of shares in case of oversubscription is called…..
  • Pro‐rata allotment
  • Private Placement
  • Offer for sale
  • None of these
Q19 | Security premium account can be utilized for ………….
  • Issuing fully paid bonus shares
  • Write off preliminary expenses
  • Write off underwriting commission
  • All of these
Q20 | …………..is that portion of issued capital which is applied for by the public.
  • Issued capital
  • Subscribed capital
  • Nominal Capital
  • Paid up capital
Q21 | ……………is an instrument of acknowledgment of debt.
  • Equity share
  • Preference Share
  • Debenture
  • All of these
Q22 | Debenture represents ………. Of a company
  • Borrowed capital
  • Owned capital
  • Hybrid capital
  • None of these
Q23 | Debenture holders will get ……..
  • Dividend
  • Interest
  • Profit
  • All of these
Q24 | Debenture holders are the ……….of a company
  • Debtors
  • Owners
  • Creditors
  • Borrowers
Q25 | A charge created not on specific assets but generally on all assets is known as………….
  • Fixed charge
  • Floating charge
  • Mortgage
  • None of these