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1680+ more mcqs Solved MCQs

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These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Computer Applications (BBA [CA]) , Bachelor of Business Administration (BBA) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) , Cost Accounting .

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151.	. ………….company Is a company created by a special Act in Parliament
A.	Government
B.	Registered
C.	Chartered
D.	Statutory
Answer» D. Statutory

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152.	A company registered with Registrar of Companies under Indian Companies Act is called as………..
A.	Government
B.	Registered
C.	Chartered
D.	Statutory
Answer» B. Registered

153.	The company in which the liability of members is liable to pay the agreed amount at the time of winding up is called as …………..
A.	Unlimited Company
B.	Company limited by shares
C.	Company limited by guarantee
D.	Liquidating Company
Answer» C. Company limited by guarantee

154.	A company in which the transferability of share is restricted is called as …………..
A.	Government Company
B.	Private Company
C.	Public Company
D.	Foreign Company
Answer» B. Private Company

155.	. ……….is the first stage in the formation of a public company
A.	Promotion
B.	Incorporation
C.	Capital Subscription
D.	Commencement
Answer» A. Promotion

156.	Authorised capital is called as……………
A.	Reserve capital
B.	Nominal Capital
C.	Capital Reserve
D.	Subscribed capital
Answer» B. Nominal Capital

157.	. …………..is that portion of capital which is called up only on winding up of the company.
A.	Authorised Capital
B.	Issued capital
C.	Subscribed capital
D.	Reserve capital
Answer» D. Reserve capital

158.	In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.
A.	Participating
B.	Convertible
C.	Cumulative
D.	Redeemable
Answer» C. Cumulative

159.	. …………..shares are repayable after the expiry of the fixed period or at the option of the company.
A.	Participating
B.	Convertible
C.	Cumulative
D.	Redeemable
Answer» D. Redeemable

160.	A bundle of fully paid shares is called……………..
A.	Stock
B.	Sweat Equity
C.	Warrant
D.	None of these
Answer» A. Stock

161.	IPO stands for ………………
A.	Initial Private Offer
B.	International Public Offer
C.	Initial Public Offer
D.	International Private Offer
Answer» C. Initial Public Offer

162.	In …... the company offers the investors an opportunity to bid collectively.
A.	Private Placement
B.	Offer for sale
C.	Book building
D.	IPO
Answer» C. Book building

163.	As per the companies Act, the interest on calls in advance is …………..
A.	10%
B.	6%
C.	5%
D.	7%
Answer» B. 6%

164.	The rate of interest on Calls in arrears as per Companies Act is …………
A.	10%
B.	6%
C.	5%
D.	7%
Answer» C. 5%

165.	The shares of a company can be issued at …………..
A.	Par
B.	Premium
C.	Discount
D.	All of these
Answer» D. All of these

166.	Share application account is a ………..
A.	Real Account
B.	Nominal Account
C.	Impersonal Account.
D.	Personal Account
Answer» D. Personal Account

167.	The rate of discount on shares cannot exceed ……….
A.	10%
B.	5%
C.	6%
D.	7%
Answer» A. 10%

168.	A newly established company cannot issue shares at ……
A.	Par
B.	Premium
C.	Discount
D.	All of these
Answer» C. Discount

169.	. ………..of total issued amount of capital is called minimum subscription.
A.	75%
B.	90%
C.	95%
D.	80%
Answer» B. 90%

170.	The rate of discount should not exceed ……………. Of nominal vale of shares.
A.	10%
B.	5%
C.	6%
D.	7%
Answer» A. 10%

171.	The minimum application money to be paid by an applicant must not be less than …… as per Companies Act.
A.	10%
B.	5%
C.	15%
D.	20%
Answer» B. 5%

172.	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

173.	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

174.	Preference shareholders are…………
A.	Debtors of the company
B.	Creditors of the company
C.	Owners of the company
D.	None of these
Answer» B. Creditors of the company

175.	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

176.	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

1680+ more mcqs Solved MCQs

. ………….company Is a company created by a special Act in Parliament

A company registered with Registrar of Companies under Indian Companies Act is called as………..

The company in which the liability of members is liable to pay the agreed amount at the time of winding up is called as …………..

A company in which the transferability of share is restricted is called as …………..

. ……….is the first stage in the formation of a public company

Authorised capital is called as……………

. …………..is that portion of capital which is called up only on winding up of the company.

In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.

. …………..shares are repayable after the expiry of the fixed period or at the option of the company.

A bundle of fully paid shares is called……………..

IPO stands for ………………

In …... the company offers the investors an opportunity to bid collectively.

As per the companies Act, the interest on calls in advance is …………..

The rate of interest on Calls in arrears as per Companies Act is …………

The shares of a company can be issued at …………..

Share application account is a ………..

The rate of discount on shares cannot exceed ……….

A newly established company cannot issue shares at ……

. ………..of total issued amount of capital is called minimum subscription.

The rate of discount should not exceed ……………. Of nominal vale of shares.

The minimum application money to be paid by an applicant must not be less than …… as per Companies Act.

The excess price received on the par value of shares should be credited to ………….

The profit on reissue of forfeited shares is transferred to ………

Preference shareholders are…………

The shares firstly offered to the existing shareholders are called as ………….

The security premium account is shown in the balance sheet under the head……….

………..should be deducted from the share capital to determine the paid up capital.

The share capital account is debited with …………while forfeiting shares

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 ……

Balance of forfeited share is …….

When shares are issued at a price higher than their face value, it is called issue at…………..

The shares of a company only can be forfeited after giving a ………days notice

The forfeited shares can be reissued at …………

Preference shares cannot be redeemed at ………..

Which of the following is an example for capital profit?

The allotment of shares in case of oversubscription is called…..

Security premium account can be utilized for ………….

. …………..is that portion of issued capital which is applied for by the public.

. ……………is an instrument of acknowledgment of debt.

Debenture represents ………. Of a company

Debenture holders will get ……..

Debenture holders are the ……….of a company

A charge created not on specific assets but generally on all assets is known as………….

. …………..debentures can be transferred only with the knowledge of the company.

. ………..debentures are transferable by mere delivery

. …………debentures are secured by the assets of the company

. Unsecured debentures are called as ……………….debentures

FCD stands for ……………

Discount or loss on issue of debenture is a ………….

Debentures can be redeemed out of ……….

177.	………..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

178.	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

179.	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

180.	Balance of forfeited share is …….
A.	Revenue Reserve
B.	Capital Reserve
C.	Secret Reserve
D.	Security Premium
Answer» B. Capital Reserve

181.	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

182.	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

183.	The forfeited shares can be reissued at …………
A.	Par
B.	Premium
C.	Discount
D.	All of these
Answer» D. All of these

184.	Preference shares cannot be redeemed at ………..
A.	Par
B.	Premium
C.	Discount
D.	All of these
Answer» C. Discount

185.	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.

186.	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