Corporate Accounting Set 6
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 6
Q1 | Right shares are issued to ------
- directors
- promoters
- existing share holders
- debenture holders
Q2 | Shares which carry preferential rights are called ------
- equity shares
- preference shares
- sweaty equity
- green shoe
Q3 | A company cannot issue redeemable preference shares for a period exceeding ……….
- 6 years
- 7years
- 10 years
- 20 years
Q4 | Preference shares can be redeemed….
- If they are fully paid up
- if they are partly paid up
- if they are convertible.
- None of these
Q5 | Premium on redemption of preference shares can be provided out of ….
- securities premium account
- capital reserve account
- general reserve account
- all of these
Q6 | At present, a company limited by shares cannot issue …..preference shares
- redeemable
- irredeemable
- convertible
- none of these
Q7 | Capital redemption reserve is created out of
- Dividend equalization fund
- P/L account
- General reserve account
- All of these
Q8 | Capital redemption reserve can be utilized for…
- declaring dividend
- writing of capital losses
- issue of fully paid up bonus shares
- none of these
Q9 | ------- profit means profit which would otherwise be available for distribution ofdividend.
- capital
- gross
- net
- divisible
Q10 | Which of the following is not a source of redemption of preference shares?
- divisible profit
- securities premium a/c
- realization of asset
- proceeds of fresh issue
Q11 | The nominal value of preference shares to be redeemed can be provided out of ------
- general reserve
- capital reserve
- CRR
- securities premium
Q12 | Redemption of preference shares should not be regarded as reduction of ----- capital ofthe company.
- paid-up
- called-up
- subscribed
- authorized
Q13 | Buyback of shares should not exceed ….percent of paid up capital and free reserve of thecompany.
- 50%
- 10%
- 5%
- 25%
Q14 | Under the scheme of buyback of shares , the company in order to perform its obligations , is required to open an ….account
- fixed deposit
- escrow deposit
- savings deposit
- current deposit
Q15 | Debenture represents ….of the company
- deposit
- overdraft
- loan
- none of these
Q16 | Debenture holders are ….of the company
- owners
- creditors
- both
- none of these
Q17 | Loss on issue or discount on issue of debenture is a…..asset
- tangible
- current
- fictitious
- none of these
Q18 | When debentures are redeemed out of profits, an amount equal is transferred to…..
- CRR
- capital reserve
- revenue reserve
- debenture redemption reserve
Q19 | Profit on sale of sinking fund investment is credited to ….
- general reserve
- capital reserve
- sinking fund
- none of these
Q20 | When own debentures are cancelled any profit on cancellation is transferred to …
- general reserve
- capital reserve
- P/L Account
- none of these
Q21 | Premium on issue of debentures is a….
- capital loss
- capital profit
- revenue profit
- revenue loss
Q22 | ------ is a document which either creates or acknowledges a debt.
- debenture
- trust deed
- security
- Articles of Association
Q23 | -------- debentures are secured by a charge on the assets of the company.
- naked
- simple
- unsecured
- mortgage
Q24 | -------- is a document prepared by the company before the issue of prospectus to thepublic for subscription of debentures.
- debenture
- trust deed
- abridged prospectus
- call letter
Q25 | Companies may issue debentures as security against loans taken from banks/financialinstitutions.
- principal
- primary
- collateral
- chargeable