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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 21

Q1 | The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company.
  • Printing expenses
  • Establishment expenses
  • Preliminary expenses
  • None of these.
Q2 | Which of the following not the uses of share premium.
  • Issue of partly paid bonus shares
  • Issue of fully paid bonus shares
  • Write off preliminary expense
  • Write off expenses on the issue of shares.
Q3 | When shares originally issued at discount are forfeited, the discount in respect of them is to be ‐‐‐‐‐‐‐
  • Debited
  • Credited
  • Paid
  • None of these
Q4 | Once the share premium account is credited the same, if the premium is not received.
  • Cannot be debited
  • Cannot be credited
  • Can be debited
  • Can be credited
Q5 | Dividend is payable on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the shares.
  • Paid up value
  • Called up value
  • Calls in advance
  • None of these.
Q6 | Share can be forfeited for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • For non‐payment of call money
  • For failure to attend meetings
  • Failure to repay the loan
  • None of these.
Q7 | When shares are forfeited the share capital account is debited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Calls‐in‐arrears
  • Called up amount
  • Paid up amount
  • Subscribed amount
Q8 | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ have priority over equity as to the receipt of individuals and as to assets in the event ofliquidation.
  • Equity shares
  • Deferred shares
  • Preference shares
  • Sweat equity shares
Q9 | Preference shares cannot be redeemed unless they are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Partly paid
  • Fully paid
  • Twice paid up
  • One by two paid up.
Q10 | Called up capital minus calls in appear is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Subscribed capital
  • Registered capital
  • Paid up capital
  • Uncalled capital.
Q11 | The minimum amount of capital which must be subscribed by the public before a public companycan allot shares is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Allotment money
  • Minimum subscription
  • Subscribed capital
  • Issued capital.
Q12 | Find the odd one:‐
  • Subscribed capital
  • Authorized capital
  • Registered capital
  • Nominal capital
Q13 | When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account iscredited with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Rs.1,500
  • Rs.3,500
  • Rs.5,000
  • Rs.2,000
Q14 | If one share is allotted for every five shares applied, an applicant for 1,000 shares will get ‐‐‐‐‐‐‐‐‐‐‐
  • 200 shares
  • 5000 shares
  • 5 shares
  • 6 shares.
Q15 | If a share of Rs.10 is issued at a premium of 20%, the issue price is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Rs.8
  • Rs.12
  • Rs.2
  • None of these.
Q16 | Right issue means issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Existing debenture holder
  • Existing share holders
  • Promoters
  • Institutional investors
Q17 | Find the odd one:‐
  • To issue fully paid bonus shares
  • To Write off preliminary expenses
  • To distribute dividend in cash
  • To pay Premium payable on redemption of shares or debentures.
Q18 | When shares are oversubscribed, allotment is made on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basis
  • First come first served
  • Pro‐data
  • Total
  • None of these.
Q19 | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of a company can be called up only in the event of winding up.
  • Reserve
  • Authorized
  • Registered
  • Nominal
Q20 | Debentures constitute ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of the company
  • Owned
  • Borrowed
  • Reserve
  • None of these
Q21 | Debenture holders are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company.
  • Owners
  • Creditors
  • Debtors
  • None of these
Q22 | Generally, debentures are
  • Unsecured
  • Secured
  • Converted
  • Bearer
Q23 | Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of liability on debentures.
  • Conversion
  • Discharge
  • Creation
  • None of these
Q24 | Debentures issued with a fixed or a floating charge on the assets of the company are called ‐‐‐‐‐‐‐‐‐‐‐ debentures
  • Bearer
  • Secured
  • Simple
  • Unsecured
Q25 | Debentures repayable after a fixed period of a time are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures.
  • Convertible
  • Redeemable
  • Bearer
  • Secured