Q. The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company.
✅ Correct Answer: (C)
Preliminary expenses
Corporate Accounting MCQs and Notes
Q. The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐ of the companies Act.
✅ Correct Answer: (C)
Section 79
Q. a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
✅ Correct Answer: (B)
Share capital
Q. When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
✅ Correct Answer: (A)
Redemption by drawing a lot
Q. When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account.
✅ Correct Answer: (C)
Debenture redemption reserve
Q. For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐ ‐‐ basis.
✅ Correct Answer: (B)
Cum‐Interest
Q. When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
✅ Correct Answer: (C)
Capital Reserve
Q. No journal entry is required for the cancellation of ………. Share capital
✅ Correct Answer: (A)
Unissued
Q. In subdivision of shares, …… capital does not change
✅ Correct Answer: (A)
Paid up
Q. Rights shares are those shares which are __________.
✅ Correct Answer: (A)
first offered to the existing shareholders