Q. Cancelation of shares mean
✅ Correct Answer: (C)
forfeiture of shares
Financial Accounting 2 MCQs and Notes
Q. If the minimum subscription is not received by the company, then the refund of application money should be made within ______ days.
✅ Correct Answer: (C)
10
Q. Debentures can be issued only
✅ Correct Answer: (D)
any of the above
Q. Dividends are usually paid as a percentage of
✅ Correct Answer: (C)
paid up capital
Q. Debenture holders are the _____ of the company
✅ Correct Answer: (C)
creditors
Q. Debenture holders have right to receive _______ even if there is no profit
✅ Correct Answer: (A)
interest
Q. Preference shares have priority over equity shares for
✅ Correct Answer: (A)
payment of dividend and repayment of capital
Q. After the issue of forfeited shares, balance of forfeited shares account Is transferred to
✅ Correct Answer: (A)
capital reserves a/c
Q. Securities premium account can be used for
✅ Correct Answer: (D)
to write off preliminary expenses