MCQOPTIONS
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MCQOPTIONS
This section includes 1706 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
As per the SEBI guidelines, on issue of shares, the application money should not be lessthan |
| A. | 2.5% of the nominal value of shares |
| B. | 2.5% of the issue price of shares |
| C. | 25% of the issue price of shares |
| D. | 25% of the nominal value of shares |
| Answer» D. 25% of the nominal value of shares | |
| 2. |
The excess price received over the par value of shares, should be credited __________. |
| A. | calls-in-advance account |
| B. | share capital account |
| C. | securities premium account |
| D. | discount on issue of shares account |
| Answer» D. discount on issue of shares account | |
| 3. |
When shares are forfeited, the share capital account is debited with ________ and theshare forfeiture account is credited with __________. |
| A. | paid-up capital of shares forfeited; called up capital of shares forfeited |
| B. | called up capital of shares forfeited; calls in arrear of shares forfeited |
| C. | called up capital of shares forfeited; amount received on shares forfeited |
| D. | none of these |
| Answer» D. none of these | |
| 4. |
The Securities Premium amount may be utilized by a company for __________. |
| A. | writing off any loss on sale of fixed asset |
| B. | writing off any loss of revenue nature |
| C. | writing off the expenses/discount on the issue of debentures |
| D. | none of these |
| Answer» D. none of these | |
| 5. |
Discount on issue of debentures is shown under the heading in a company's Balance Sheet_______ |
| A. | fixed assets |
| B. | loans and advances |
| C. | investment |
| D. | miscellaneous expenditure |
| Answer» E. | |
| 6. |
Debentures represent the _________ |
| A. | manager's share in a business |
| B. | investment by shareholders in a business |
| C. | long term borrowing of a business |
| D. | none of the above |
| Answer» D. none of the above | |
| 7. |
Forfeited shares to become ________ |
| A. | property of the government |
| B. | property of the company |
| C. | property of the shareholders |
| D. | property of all the shareholders |
| Answer» C. property of the shareholders | |
| 8. |
To issue shares on Discount mean |
| A. | issue on face value of shares |
| B. | issue on more than face value of shares |
| C. | issue on less than face value of shares |
| D. | initial public offer |
| Answer» D. initial public offer | |
| 9. |
To issue shares on Par mean |
| A. | issue on face value of shares |
| B. | issue on more than face value of shares |
| C. | issue on less than face value of shares |
| D. | initial public offer |
| Answer» B. issue on more than face value of shares | |
| 10. |
To issue shares on premium mean |
| A. | issue on face value of shares |
| B. | issue on more than face value of shares |
| C. | issue on less than face value of shares |
| D. | initial public offer |
| Answer» C. issue on less than face value of shares | |
| 11. |
Cancelation of shares mean |
| A. | reissue of shares |
| B. | valuation of shares |
| C. | forfeiture of shares |
| D. | allotment of shares |
| Answer» D. allotment of shares | |
| 12. |
If the minimum subscription is not received by the company, then the refund of applicationmoney should be made within ______ days. |
| A. | 7 |
| B. | 9 |
| C. | 10 |
| D. | 22 |
| Answer» D. 22 | |
| 13. |
Debentures can be issued only |
| A. | at par |
| B. | at discount |
| C. | premium |
| D. | any of the above |
| Answer» E. | |
| 14. |
Debenture holders are the _____ of the company |
| A. | owners |
| B. | customers |
| C. | creditors |
| D. | partners |
| Answer» D. partners | |
| 15. |
Debenture holders have right to receive _______ even if there is no profit |
| A. | interest |
| B. | commission |
| C. | dividend |
| D. | bonus |
| Answer» B. commission | |
| 16. |
Shareholders get: |
| A. | interest |
| B. | dividend |
| C. | bonus |
| D. | commission |
| Answer» C. bonus | |
| 17. |
Preference shares have priority over equity shares for |
| A. | payment of dividend and repayment of capital |
| B. | voting in annual general meeting |
| C. | subscribe for new issue of shares and debentures |
| D. | interest on money invested in company |
| Answer» B. voting in annual general meeting | |
| 18. |
After the issue of forfeited shares, balance of forfeited shares account Is transferred to |
| A. | capital reserves a/c |
| B. | share capital |
| C. | general reserves |
| D. | profit & loss a/c |
| Answer» B. share capital | |
| 19. |
Securities premium account can be used for |
| A. | paying tax liability |
| B. | paying dividend on shares |
| C. | allowing discount in reissue of forfeited shares |
| D. | to write off preliminary expenses |
| Answer» E. | |
| 20. |
Forfeiture of shares results in compulsory termination of ______ due to non-payment ofallotment/call money |
| A. | allotment |
| B. | membership |
| C. | subscription |
| D. | issue |
| Answer» C. subscription | |
| 21. |
Right shares are issued to _________ shareholders |
| A. | previous |
| B. | existing |
| C. | future |
| D. | none of these |
| Answer» C. future | |
| 22. |
Bonus shares are issued out of _________ |
| A. | capital reserve |
| B. | free reserve |
| C. | share premium |
| D. | none of these |
| Answer» C. share premium | |
| 23. |
Bonus shares are issued by ________ free reserves |
| A. | generalizing |
| B. | capitalizing |
| C. | equalizing |
| D. | none of these |
| Answer» C. equalizing | |
| 24. |
When bonus share are received the average cost of the existing shares are ______ |
| A. | reduced |
| B. | increased |
| C. | equal |
| D. | none of these |
| Answer» B. increased | |
| 25. |
A company can issue share at a discount if |
| A. | one year have been elapsed since the date at which the company was allowed to commence business |
| B. | shares issued at a discount must belong to a class of shares already issued |
| C. | issue must take place within two must after the date of sanction by the court or within extended time. |
| D. | all of the above |
| Answer» E. | |
| 26. |
Which of the following is not a statistical book of a company? |
| A. | share application and allotment book |
| B. | register of share warrants |
| C. | register of shares and debentures transferred |
| D. | register of debenture holders |
| Answer» E. | |
| 27. |
According to sec. 100(1)(c) of the companies act, a company can pay back share capitalwhich is in excess of need if: |
| A. | authorized by articles |
| B. | confirmation of the court |
| C. | special resolution is passed to that effect |
| D. | all of the above |
| Answer» E. | |
| 28. |
Which of the following can be utilized for the redemption of preference shares of acompany out of profit: |
| A. | shares forfeited account |
| B. | development rebate reserve account |
| C. | capital redemption reserve account |
| D. | dividend equalization reserve |
| Answer» E. | |
| 29. |
Redeemable Preference shares can be redeemed out of __________ |
| A. | the sale proceeds of investments |
| B. | the proceeds of a fresh issue of shares |
| C. | share premium |
| D. | the proceeds of issue of debentures |
| Answer» C. share premium | |
| 30. |
Right share are not offered to the existing equity shareholders if: |
| A. | the company in general meeting has so decided by a special resolution |
| B. | decided by an ordinary resolution and same has been approved by the central government |
| C. | right shares are offered to existing shareholders only |
| D. | both a and b. |
| Answer» E. | |
| 31. |
Which of the following reserves which can be utilised to make partly paid shares into fullypaid up: |
| A. | securities premium |
| B. | capital redemption reserve |
| C. | surplus arising from a change in the method of charging depreciation |
| D. | capital reserve from sale of fixed assets in cash |
| Answer» E. | |
| 32. |
Which of the following statement in false: |
| A. | bonus issue is made out of free reserves or securities premium collected in cash only |
| B. | bonus shares can be issued out revaluation profit |
| C. | no bonus issue shall be made within 12 months of any public or right issue |
| D. | company can issue bonus shares in any ratio. |
| Answer» C. no bonus issue shall be made within 12 months of any public or right issue | |
| 33. |
Maximum buy back limit in any year is ______ of total paid up equity capital and freereserves. |
| A. | 25% |
| B. | 10% |
| C. | 20% |
| D. | no limit |
| Answer» B. 10% | |
| 34. |
If shares are bought back out of free reserves then a sum equal to nominal value of theshares so bought back is transferred to: |
| A. | capital reserve account |
| B. | capital redemption reserve account (crr) |
| C. | general reserve account |
| D. | statutory reserve account |
| Answer» C. general reserve account | |
| 35. |
The portion of the authorised capital which can be called-up only on the liquidation of thecompany is called |
| A. | authorised capital |
| B. | reserve capital |
| C. | issued capital |
| D. | called up capital |
| Answer» C. issued capital | |
| 36. |
As per section 78 of the companies act, amount collected as premium on securities cannotbe utilized for: |
| A. | issuing fully paid bonus shares to the members |
| B. | purchase of fixed assets |
| C. | writing off preliminary expenses |
| D. | buy back of it’s own shares |
| Answer» C. writing off preliminary expenses | |
| 37. |
Securities premium account is shown on the liabilities side of the balance sheet under thehead: |
| A. | share capital |
| B. | reserves and surplus |
| C. | current liabilities |
| D. | non-current liabilities |
| Answer» C. current liabilities | |
| 38. |
Share application and allotment account is a: |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | none of the above |
| Answer» B. real account | |
| 39. |
Which of the following are the characteristics of a company |
| A. | liability of the members is limited up to the face value of shares held by them |
| B. | it is a voluntary association of persons |
| C. | a company is a separate body can sue and be sued in its own name |
| D. | perpetual succession |
| Answer» D. perpetual succession | |
| 40. |
Hire Purchase price = |
| A. | cash price + down payment |
| B. | cash price + total interest |
| C. | cash price |
| D. | sum of total instalments |
| Answer» C. cash price | |
| 41. |
Cash Price = |
| A. | hire purchase price – total interest |
| B. | down payment in cash |
| C. | down payment + interest |
| D. | none of the above |
| Answer» B. down payment in cash | |
| 42. |
________ is the initial payment made at the time of signing the hire purchase agreement |
| A. | hp price |
| B. | installment price |
| C. | cash price |
| D. | down payment |
| Answer» E. | |
| 43. |
________ means the price at which the goods can be purchased by the hirer for readycash. |
| A. | hp price |
| B. | installment price |
| C. | cash price |
| D. | down payment |
| Answer» D. down payment | |
| 44. |
In case of Hire-Purchase the total sum payable by the hire-purchaser as per terms in orderto complete the transactions is |
| A. | net cash price |
| B. | net hire-purchase charges |
| C. | hire-purchase price |
| D. | cash price instalment |
| Answer» D. cash price instalment | |
| 45. |
Nature of hire purchase agreement is __________. |
| A. | agreement of sale |
| B. | option to transfer |
| C. | option to buy |
| D. | option to sell |
| Answer» D. option to sell | |
| 46. |
In the books of Hirer, the interest and depreciation account will be transferred to ______. |
| A. | trading account |
| B. | p & l account |
| C. | p & l appropriation account |
| D. | balance sheet |
| Answer» C. p & l appropriation account | |
| 47. |
In the books of hirer, for interest due at the end of the year hire vendor account will be_______ |
| A. | debited |
| B. | credited |
| C. | rectified |
| D. | reversed |
| Answer» C. rectified | |
| 48. |
If the hire vendor may take away all the goods on which there is default of installment itis called____________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase. |
| Answer» D. purchase. | |
| 49. |
In the books of hirer, for payment of installment hire vendor account will be ________ |
| A. | debited |
| B. | credited |
| C. | rectified |
| D. | reversed |
| Answer» B. credited | |
| 50. |
The hire vendor takes away only a portion of the goods on which there is default ofInstallments it is called _________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase |
| Answer» C. complete repossession | |