Corporate Accounting Set 5
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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