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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 5

Q1 | Sources of finance of the redemption of debentures are:
  • redemption out of profits
  • redemption out of capital
  • the proceeds from fresh issue of shares/debentures
  • all the above
Q2 | Which of the following is not shown on the liability side of a balance sheet of a company
  • authorized capital
  • issued capital
  • paid up capital
  • reserve capital
Q3 | Share application account is a….
  • nominal
  • real
  • personal
  • none of these
Q4 | Penalty for delay in refunding application money
  • 6%
  • 5%
  • 15%
  • 20%
Q5 | Conversion of physical shares in to electronic securities is called….
  • dematerialization
  • price rigging
  • re-materialization
  • none of these
Q6 | Public limited companies cannot issue ….
  • equity shares
  • deferred shares
  • preference shares
  • right shares
Q7 | Preference shareholders are …. of the company
  • creditors
  • owners
  • customers
  • borrowers
Q8 | The minimum share application money is….
  • Re.1 /share
  • 5% of the face value of share
  • 10% of the issue price of share
  • none of these
Q9 | The difference between subscribed capital and called capital is known as…..
  • calls in advance
  • paid up capital
  • uncalled capital
  • calls in arrear
Q10 | The rate of discount on issue of shares should not exceed …. % of the nominal value ofshares.
  • 10
  • 2
  • 4
  • 5
Q11 | On calls in advance, interest is payable @ ….
  • 5%
  • 6%
  • 4%
  • Nil
Q12 | Right shares are those shares which are issued to
  • directors
  • promoters
  • existing shareholders
  • none of these
Q13 | After completing ….years a company can issue shares at discount.
  • 2
  • 3
  • 1
  • 4
Q14 | The profit on reissue of shares is transferred to ….
  • general reserve
  • capital reserve
  • P/L Account
  • P/L Appropriation account
Q15 | Voluntary return of shares by shareholders to the company for cancellation is called
  • transfer of shares
  • forfeiture of shares
  • surrender of shares
  • buyback of shares
Q16 | The minimum amount of capital which must be subscribed by the public beforeallotment is called
  • allotment money
  • Minimum subscription
  • subscribed capital
  • None of these
Q17 | Stock is a consolidation of …..Shares.
  • partly paid shares
  • fully paid shares.
  • equity shares
  • Sweat shares
Q18 | That part of the capital which will be called up only in the event of winding up of thecompany is called ------- capital
  • issued
  • paid-up
  • reserve
  • uncalled
Q19 | Preference share holders are entitled to a fixed rate of -------
  • interest
  • dividend
  • coupon
  • capital
Q20 | Those preference shares which do not carry the right of share in excess profits are knownas ------- preference shares.
  • irredeemable
  • non-cumulative
  • non -convertible
  • non-participating
Q21 | ------ is deducted from the called- up capital in order to calculate paid-up capital.
  • calls in arrear
  • calls in advance
  • un called capital
  • reserve capital
Q22 | Forfeiture of shares results in compulsory termination of ------ due to non payment ofallotment/call money.
  • allotment
  • membership
  • subscription
  • issue
Q23 | On forfeiture of shares, which of the following account is credited with the amount ofmoney already received on such shares?
  • shares forfeited a/c
  • share capital a/c
  • unpaid calls a/c
  • share premium a/c
Q24 | The discount on re-issue of forfeited shares is debited to ---- a/c.
  • share capital
  • shares forfeited
  • bank
  • discount on issue of shares
Q25 | ------ implies issue and allotment of shares to a selected group of persons and not togeneral public.
  • initial public offer
  • right issue
  • private placement
  • pre-emptive right