Financial Accounting 2 MCQs and Notes

A

Admin • 36.94K Points
Coach

Q 1. As per the SEBI guidelines, on issue of shares, the application money should not be less than

(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

R

Ram Sharma • 193.86K Points
Coach

Q 2. When shares are forfeited, the share capital account is debited with ________ and the share 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

P

Praveen Singh • 36.81K Points
Coach

Q 3. 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

V

Vinay • 28.75K Points
Instructor II

Q 4. 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

R

Ram Sharma • 193.86K Points
Coach

Q 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

P

Priyanka Tomar • 35.28K Points
Coach

Q 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

P

Praveen Singh • 36.81K Points
Coach

Q 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

R

Ram Sharma • 193.86K Points
Coach

Q 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

V

Vinay • 28.75K Points
Instructor II

Q 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

V

Vikash Gupta • 33.56K Points
Instructor I

Q 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