Q. Forfeiture of shares results in compulsory termination of ______ due to non-payment of allotment/call money
✅ Correct Answer: (B)
membership
Financial Accounting 2 MCQs and Notes
Q. Right shares are issued to _________ shareholders
✅ Correct Answer: (B)
existing
Q. Bonus shares are issued out of _________
✅ Correct Answer: (B)
free reserve
Q. Bonus shares are issued by ________ free reserves
✅ Correct Answer: (B)
capitalizing
Q. When bonus share are received the average cost of the existing shares are ______
✅ Correct Answer: (A)
reduced
Q. A company can issue share at a discount if
✅ Correct Answer: (D)
all of the above
Q. Which of the following is not a statistical book of a company?
✅ Correct Answer: (D)
register of debenture holders
Q. According to sec. 100(1)(c) of the companies act, a company can pay back share capital which is in excess of need if:
✅ Correct Answer: (D)
all of the above
Q. Redeemable Preference shares can be redeemed out of __________
✅ Correct Answer: (B)
the proceeds of a fresh issue of shares
Q. Which of the following statement is false:
✅ Correct Answer: (A)
bonus issue is made in lieu of dividend