McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
Chapters
| 451. |
The excess price received on the par value of shares should be credited to …………. |
| A. | Calls in advance A/c |
| B. | Reserve Capital A/c |
| C. | Security Premium A/c |
| D. | None of these |
| Answer» C. Security Premium A/c | |
| 452. |
Underwriting commission is classified as ………….. |
| A. | Capital Loss |
| B. | Capita Expenditure |
| C. | Revenue expenditure |
| D. | Deferred revenue expenditure |
| Answer» D. Deferred revenue expenditure | |
| 453. |
Compulsory cancellation of shares by the company\y due to non‐payment of allotment or call money is called ……………. |
| A. | Surrender of Shares |
| B. | Buy back of shares |
| C. | Forfeiture of shares |
| D. | All of these |
| Answer» C. Forfeiture of shares | |
| 454. |
The profit on reissue of forfeited shares is transferred to ……… |
| A. | General reserve |
| B. | Capital Redemption reserve |
| C. | Capital reserve |
| D. | Investment Allowance reserve |
| Answer» C. Capital reserve | |
| 455. |
Preference shareholders are………… |
| A. | Debtors of the company |
| B. | Creditors of the company |
| C. | Owners of the company |
| D. | None of these |
| Answer» C. Owners of the company | |
| 456. |
The shares firstly offered to the existing shareholders are called as …………. |
| A. | Right shares |
| B. | Bonus shares |
| C. | Ordinary shares |
| D. | None of these |
| Answer» A. Right shares | |
| 457. |
The security premium account is shown in the balance sheet under the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilities |
| Answer» B. Reserves & Surplus | |
| 458. |
………..should be deducted from the share capital to determine the paid up capital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» C. Calls in arrears | |
| 459. |
The share capital account is debited with …………while forfeiting shares |
| A. | Calls in arrears |
| B. | Paid up capital |
| C. | Called capital |
| D. | Issued capital |
| Answer» C. Called capital | |
| 460. |
On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been received by the company, the share capital account should be credited by …… |
| A. | Rs. 20 |
| B. | Rs. 16 |
| C. | Rs. 14 |
| D. | Rs. 6 |
| Answer» B. Rs. 16 | |
| 461. |
Balance of forfeited share is ……. |
| A. | Revenue Reserve |
| B. | Capital Reserve |
| C. | Secret Reserve |
| D. | Security Premium |
| Answer» B. Capital Reserve | |
| 462. |
When shares are issued at a price higher than their face value, it is called issue at………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | None of these |
| Answer» B. Premium | |
| 463. |
The shares of a company only can be forfeited after giving a ………days notice |
| A. | 21 |
| B. | 14 |
| C. | 7 |
| D. | 30 |
| Answer» B. 14 | |
| 464. |
The forfeited shares can be reissued at ………… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 465. |
Discount on reissue of forfeited shares should not exceed …………. |
| A. | Amount forfeited |
| B. | Face value |
| C. | Issued price |
| D. | Market price |
| Answer» A. Amount forfeited | |
| 466. |
Preference shares cannot be redeemed at ……….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» C. Discount | |
| 467. |
Preference shares can be redeemed by…………. |
| A. | Fresh issue of shares |
| B. | Profit |
| C. | Partly out of fresh issue and partly out of profit. |
| D. | All of these |
| Answer» D. All of these | |
| 468. |
…………… preference shares can be redeemed |
| A. | Fully paid |
| B. | Partly paid |
| C. | Both A and B |
| D. | None of these |
| Answer» A. Fully paid | |
| 469. |
Profit available for dividend distribution is called …………. |
| A. | Capital profit |
| B. | Divisible profit |
| C. | Capital Reserve |
| D. | None of these |
| Answer» B. Divisible profit | |
| 470. |
Which of the following is an example for capital profit? |
| A. | Capital Reserves |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» D. All of these. | |
| 471. |
Which of the following is an example for divisible profit? |
| A. | General Reserve |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» A. General Reserve | |
| 472. |
In case of redemption out f profit, an amount equal to face value of shares so redeemed should be transferred to ………… |
| A. | Security premium |
| B. | Capital Redemption Reserve |
| C. | Dividend Equalization Reserve |
| D. | None of these |
| Answer» B. Capital Redemption Reserve | |
| 473. |
Capital Redemption Reserve Account can be utilized for……… |
| A. | Writing off past losses |
| B. | Issuing partly paid bonus shares |
| C. | Writing off capital losses |
| D. | Issuing fully paid bonus shares |
| Answer» D. Issuing fully paid bonus shares | |
| 474. |
The allotment of shares in case of oversubscription is called….. |
| A. | Pro‐rata allotment |
| B. | Private Placement |
| C. | Offer for sale |
| D. | None of these |
| Answer» A. Pro‐rata allotment | |
| 475. |
Security premium account can be utilized for …………. |
| A. | Issuing fully paid bonus shares |
| B. | Write off preliminary expenses |
| C. | Write off underwriting commission |
| D. | All of these |
| Answer» D. All of these | |
| 476. |
…………..is that portion of issued capital which is applied for by the public. |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Nominal Capital |
| D. | Paid up capital |
| Answer» B. Subscribed capital | |
| 477. |
……………is an instrument of acknowledgment of debt. |
| A. | Equity share |
| B. | Preference Share |
| C. | Debenture |
| D. | All of these |
| Answer» C. Debenture | |
| 478. |
Debenture represents ………. Of a company |
| A. | Borrowed capital |
| B. | Owned capital |
| C. | Hybrid capital |
| D. | None of these |
| Answer» A. Borrowed capital | |
| 479. |
Debenture holders will get …….. |
| A. | Dividend |
| B. | Interest |
| C. | Profit |
| D. | All of these |
| Answer» B. Interest | |
| 480. |
Debenture holders are the ……….of a company |
| A. | Debtors |
| B. | Owners |
| C. | Creditors |
| D. | Borrowers |
| Answer» C. Creditors | |
| 481. |
A charge created not on specific assets but generally on all assets is known as…………. |
| A. | Fixed charge |
| B. | Floating charge |
| C. | Mortgage |
| D. | None of these |
| Answer» B. Floating charge | |
| 482. |
…………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 483. |
………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 484. |
…………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 485. |
Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» A. Naked | |
| 486. |
FCD stands for …………… |
| A. | Fixed Charge Debentures |
| B. | Floating Charge Debentures |
| C. | Fully Convertible Debentures |
| D. | None of these |
| Answer» C. Fully Convertible Debentures | |
| 487. |
When debentures are issued as a consideration of purchase of assets …………. Is debited. |
| A. | Debenture Account |
| B. | Cash Account |
| C. | Assets Account |
| D. | Creditor Account |
| Answer» C. Assets Account | |
| 488. |
Discount or loss on issue of debenture is a …………. |
| A. | Capital Profit |
| B. | Revenue Receipt |
| C. | Capital Loss |
| D. | Revenue Expense |
| Answer» C. Capital Loss | |
| 489. |
Discount or loss on issue of debenture is shown in the balance sheet under the head …….. |
| A. | Reserves & Surplus |
| B. | Secured loans |
| C. | Current liabilities |
| D. | Miscellaneous expenditure |
| Answer» D. Miscellaneous expenditure | |
| 490. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 491. |
Interest on debenture is ………. |
| A. | Adjustment of profit |
| B. | Appropriation of Profit. |
| C. | Charge on profit |
| D. | None of these |
| Answer» C. Charge on profit | |
| 492. |
Debentures are shown in the balance sheet under the head ……….. |
| A. | Secured loans |
| B. | Unsecured loans |
| C. | Provisions |
| D. | Current liabilities |
| Answer» A. Secured loans | |
| 493. |
After realizing all the investments, the balance in the sinking fund account is transferred to ………… |
| A. | Profit and Loss A/c |
| B. | Debenture Account |
| C. | Sinking fund A/c |
| D. | Capital reserve |
| Answer» D. Capital reserve | |
| 494. |
When own debentures are cancelled, any profit on cancellation is transferred to …….. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Profit and Loss A/c |
| D. | Debenture A/c |
| Answer» B. Capital Reserve | |
| 495. |
If the purchase price of debentures includes interest for the expired period, the quotation is said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these |
| Answer» B. Cum‐interest | |
| 496. |
If the purchase price of debentures excluding interest for the expired period, the quotation is said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these. |
| Answer» A. Ex‐interest | |
| 497. |
As per ………..it is the statutory obligation of companies to prepare their final accounts. |
| A. | Sec 210 |
| B. | Sec 211 |
| C. | Sec 212 |
| D. | Sec 214 |
| Answer» A. Sec 210 | |
| 498. |
The Balance sheet of Companies are prepare in the form ………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» B. Part I of Schedule VI | |
| 499. |
The Profit and Loss Account of companies is prepared in the form …………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» D. Part II of Schedule VI | |
| 500. |
The dividend declared between two annual general meeting is called ………. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
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