McqMate
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 .
Chapters
| 351. |
. ……….is the first stage in the formation of a public company |
| A. | Promotion |
| B. | Incorporation |
| C. | Capital Subscription |
| D. | Commencement |
| Answer» A. Promotion | |
| 352. |
Authorised capital is called as…………… |
| A. | Reserve capital |
| B. | Nominal Capital |
| C. | Capital Reserve |
| D. | Subscribed capital |
| Answer» B. Nominal Capital | |
| 353. |
. …………..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 | |
| 354. |
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 | |
| 355. |
. …………..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 | |
| 356. |
A bundle of fully paid shares is called…………….. |
| A. | Stock |
| B. | Sweat Equity |
| C. | Warrant |
| D. | None of these |
| Answer» A. Stock | |
| 357. |
IPO stands for ……………… |
| A. | Initial Private Offer |
| B. | International Public Offer |
| C. | Initial Public Offer |
| D. | International Private Offer |
| Answer» C. Initial Public Offer | |
| 358. |
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 | |
| 359. |
As per the companies Act, the interest on calls in advance is ………….. |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» B. 6% | |
| 360. |
The rate of interest on Calls in arrears as per Companies Act is ………… |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» C. 5% | |
| 361. |
The shares of a company can be issued at ………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 362. |
Share application account is a ……….. |
| A. | Real Account |
| B. | Nominal Account |
| C. | Impersonal Account. |
| D. | Personal Account |
| Answer» D. Personal Account | |
| 363. |
The rate of discount on shares cannot exceed ………. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» A. 10% | |
| 364. |
A newly established company cannot issue shares at …… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» C. Discount | |
| 365. |
. ………..of total issued amount of capital is called minimum subscription. |
| A. | 75% |
| B. | 90% |
| C. | 95% |
| D. | 80% |
| Answer» B. 90% | |
| 366. |
The rate of discount should not exceed ……………. Of nominal vale of shares. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» A. 10% | |
| 367. |
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% | |
| 368. |
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 | |
| 369. |
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 | |
| 370. |
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 | |
| 371. |
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 | |
| 372. |
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 | |
| 373. |
………..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 | |
| 374. |
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 | |
| 375. |
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 | |
| 376. |
Balance of forfeited share is ……. |
| A. | Revenue Reserve |
| B. | Capital Reserve |
| C. | Secret Reserve |
| D. | Security Premium |
| Answer» B. Capital Reserve | |
| 377. |
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 | |
| 378. |
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 | |
| 379. |
The forfeited shares can be reissued at ………… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 380. |
Preference shares cannot be redeemed at ……….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» C. Discount | |
| 381. |
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. | |
| 382. |
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 | |
| 383. |
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 | |
| 384. |
. …………..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 | |
| 385. |
. ……………is an instrument of acknowledgment of debt. |
| A. | Equity share |
| B. | Preference Share |
| C. | Debenture |
| D. | All of these |
| Answer» C. Debenture | |
| 386. |
Debenture represents ………. Of a company |
| A. | Borrowed capital |
| B. | Owned capital |
| C. | Hybrid capital |
| D. | None of these |
| Answer» A. Borrowed capital | |
| 387. |
Debenture holders will get …….. |
| A. | Dividend |
| B. | Interest |
| C. | Profit |
| D. | All of these |
| Answer» B. Interest | |
| 388. |
Debenture holders are the ……….of a company |
| A. | Debtors |
| B. | Owners |
| C. | Creditors |
| D. | Borrowers |
| Answer» C. Creditors | |
| 389. |
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 | |
| 390. |
. …………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 391. |
. ………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 392. |
. …………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 393. |
. Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» A. Naked | |
| 394. |
FCD stands for …………… |
| A. | Fixed Charge Debentures |
| B. | Floating Charge Debentures |
| C. | Fully Convertible Debentures |
| D. | None of these |
| Answer» C. Fully Convertible Debentures | |
| 395. |
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 | |
| 396. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 397. |
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 | |
| 398. |
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 | |
| 399. |
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 | |
| 400. |
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 | |
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