Corporate Accounting Set 20
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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