Q. Bonus shares can be issued only on getting approval of
✅ Correct Answer: (D)
all
Corporate Accounting MCQs and Notes
Q. A contract that evidences a residual interest in the assets of an undertaking after deducting all its liabilities is called
✅ Correct Answer: (B)
equity instrument
Q. When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is
✅ Correct Answer: (B)
40,000
Q. Section ….. of the Companies Act deals with issue of bonus shares
✅ Correct Answer: (A)
63
Q. ……….is an agreement between two insurance companies whereby one transfers a part of risk to other.
✅ Correct Answer: (A)
Reinsurance
Q. The principle of subrogation is applicable to……………
✅ Correct Answer: (D)
All of these
Q. Profit and Loss Account of General Insurance Companies are prepared in …………
✅ Correct Answer: (C)
Form B‐PL
Q. The commission given by insurance companies to others for receiving business under reinsurance is called …………………
✅ Correct Answer: (A)
Commission on reinsurance accepted
Q. The commission earned by insurance companies from others for giving them business under reinsurance is called …………………
✅ Correct Answer: (C)
Commission on reinsurance ceded
Q. Valuation balance sheet is prepared by ……………business.
✅ Correct Answer: (C)
Life Insurance