Corporate Accounting Set 12
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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