Corporate Accounting Set 21
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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