1. Which of the following capital is not shown in Company’s
balance sheet? (C)
a.Authorised capital b.issued
and subscribed capital c.Reserve
capial d.paidup capital
2. Share application account is a…. (c)
a. nominal b. real c. personal d. none of these
3. Shares which carry preferential rights are called ----- (B)
a. equity shares b. preference shares c. sweaty equity d. green
shoe
4. Conversion of physical shares into electronic securities is
called…. (A)
a. dematerialization b.
price rigging c. re-materialization d. none of these
5. Public limited companies
cannot issue…. (B)
a. equity shares b. deferred shares c. preference shares d. right
shares
6. Preference shareholders
are …. of the company (B)
a. creditors b. owners c.
customers d. borrowers
7. The minimum share application money is…. (B)
a. Re.1 /share b. 5% of the face value of share c. 10% of the
issue price of share d. none of these
8. The difference between subscribed capital and called capital is
known as….. (C)
a. calls in advance b. paid up capital c. uncalled capital d. calls in arrear
9. The rate of discount on
issue of shares should not exceed …. % of the nominal value of shares.(A)
a. 10 b. 2 c. 4 d. 5
10. On calls in advance, interest is payable @ …. (B)
a. 5% b. 6% c. 4% d. Nil
11. Right shares are those
shares which are issued to (C)
a. directors b. promoters c. existing shareholders d. none of
these
12. After completing….
years a company can issue shares at discount. (C)
a. 2 b. 3 c. 1 d.4
13. The profit on reissue of shares is transferred to …. (B)
a. general reserve b. capital reserve c. P/L Account d. P/L Appropriation account
14. When shares are forfeited, share capital account is debited
by… (B)
a.paid up amount of shares b. called up amount of shares c. face
value of shares d. uncalled capital
15. Voluntaryreturn of
shares by shareholders to the company for cancellation is called (C)
a. transfer of shares b.
forfeiture of shares c. surrender of shares d. buyback of shares
16. The minimum amount of
capital which must be subscribed by the public before allotment
is called
(B)
a. allotment money b.
Minimum subscription c. subscribed capital d.None of these
17. Stock is a consolidation of …..Shares. (B)
a. partly paid shares b. fully paid shares. c. equity shares d.
Sweat shares
18. That part of the
capital which will be called up only in the event of winding up of the company
is called ------- capital (C)
a. issued b. paid-up c. reserve d. uncalled
19. Preference share
holders are entitled to a fixed rate of ------ (B)
a. interest b. dividend c. coupon d. capital
20. Those preference shares
which do not carry the right of share in excess profits are known as -------
preference shares. (D)
a. irredeemable b.
non-cumulative c. non -convertible d. non-participating
21. ------ is deducted from the called- up capital in order to
calculate paid-up capital. (A)
a. calls in arrear b. calls in advance c. un called capital d.
reserve capital
22. Forfeiture of shares results in compulsory termination of
------ due to non payment of allotment/call money. (B)
a. allotment b. membership
c. subscription d. issue
23. On forfeiture of shares, which of the following account is
credited with the amount of money already received on such shares? (A)
a. shares forfeited a/c b. share capital a/c c. unpaid calls a/c
d. share premium a/c
24. The discount on
re-issue of forfeited shares is debited to ---- a/c. (B)
a. share capital b. shares forfeited c. bank d. discount on issue
of shares
25. ------ implies issue and allotment of shares to a selected group
of persons and not to
general public. (C)
a. initial public offer b. right issue c. private placement d.
pre-emptive right
26. Right shares are issued
to ----- (C)
a. directors b. promoters c. existing share holders d. debenture
holders
27. Fictitious assets are shown on the asset side of the balance
sheet of a company under the heading ---------- (A)
a. Fixed asset b. current asset c. foot note d. none
28. A company cannot issue redeemable preference shares for a
period exceeding………. (D)
a. 6 years b. 7years c. 10 years d. 20 years
29. Preference shares can
be redeemed…. (A)
a. If they are fully paid up b. if they are partly paid up c. if
they are convertible. d. None of these
30. Premium on redemption of preference shares can be provided out
of …. (D)
a. securities premium account b. capital reserve account c.
general reserve account d. all of these
31. At present, a company limited by shares cannot
issue…..preference shares (B)
a. redeemable b. irredeemable c. convertible d. none of these
32. Capital redemption
reserve is created out of (D)
a. Dividend equalization
fund b. P/L account c. General reserve account d. All of these
33. Capital redemption reserve can be utilized for… (C)
a. declaring dividend b. writing of capital losses c. issue of
fully paid up bonus shares d. none of these
34.Which of the following is not a long term borrowing of a
company? (C)
a. Debentures b. term loans
c. loans repayable on demand from banks d. long- term finance lease obligations
35. Calls in advance is shown in the balance sheet as ------------ (A)
a. Current liabilities b. added to called-up capital c. current
assets d. deduction from called -up capital
36.Dividend is paid on …..capital (B)
a. called b. paid up c. issued d. none of these
37. Debenture represents….of the company (C)
a. deposit b. overdraft c.
loan d. none of these
41. Debenture holders are ….of the company (B)
a. owners b. creditors c. both d. none of these
42. Loss on issue or
discount on issue of debenture is a…..asset (C)
a. tangible b. current c.
fictitious d. none of these
43. When debentures are redeemed out of profits, an amount equal
is transferred to….. (D)
a. CRR b. capital reserve c. revenue reserve d. debenture
redemption reserve
44. Profit on sale of sinking fund investment is credited to …. (C)
a. general reserve b. capital reserve c. sinking fund d. none of
these
45. When own debentures are cancelled any profit on cancellation
is transferred to … (B)
a. general reserve b. capital reserve c. P/L Account d. none of
these
46. Premium on issue of
debentures is a…. (B)
a. capital loss b. capital profit c. revenue profit d. revenue
loss
47. ------ is a document
which either creates or acknowledges a debt. (A)
a. debenture b. trust deed c. security d. Articles of Association
48. -------- debentures are
secured by a charge on the assets of the company. (D)
a. naked b. simple c. unsecured d. mortgage
49. Discount on issue of debentures is a -------- (A)
a. capital loss b. capital profit c. revenue loss d. revenue
profit
50. Which of the following
is a method of redemption of debentures? (D)
a. draw of lots b.
conversion c. open market purchase d. all of these
51. Interest on debenture is ---- (B)
a. An appropriation of profit b. a charge against profit c. an
adjustment of profit d. none of these
52. After the redemption of debentures, any credit balance in the
Sinking Fund a/c is transferred to -------- a/c. (A)
a. general reserve b. capital reserve c. P&L d. none of these
53. Dividend is paid on …..capital (B)
a. called b. paid up c. issued d. none of these
54. Any excess amount paid to preference share holders is debited
to ------ --- account (A)
a. realisation b.
preference share holders c. P&L d. preference share capital
55. Bonus in reduction of premium appears in the revenue a/c as
--------- (B)
a. an income b. an expense c. no where d. profit
56. Penalty for delay in refunding application money (c)
a. 6% b. 5% c. 15% d. 20%.
57.Debenture premium can not be used for (C)
a.writeoff the discount on issue of the shares or debentures
b.writeoff the premium on redemption of shares or debentures
c.pay dividends
d.writeoff capital loss
58. Which of the following is not shown on the liability side of a
balance sheet of a company (d)
a. authorized capital b.
issued capital c. paid up capital d. reserve
capital
59. -------- is a document prepared by the company before the
issue of prospectus to the public for subscription of debentures. (B)
a. debenture b. trust deed
c. abridged prospectus d. call letter
60.Which of the following cannot be utilized for the redemption of
preference shares of a company(D)
a.general reserve b.P&L
a/c c.dividend equalization reserve d.securities premium on fresh
issue of shares
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