Corporate Accounting MCQs

M

Mr. Dubey • 51.72K Points
Coach

Q 81. The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company.

(A) Printing expenses
(B) Establishment expenses
(C) Preliminary expenses
(D) None of these.

M

Mr. Dubey • 51.72K Points
Coach

Q 82. The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐ of the companies Act.

(A) Section80
(B) Section 81
(C) Section 79
(D) Section 76

M

Mr. Dubey • 51.72K Points
Coach

Q 83. a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

(A) Dividend
(B) Share capital
(C) Interest
(D) Debentures.

M

Mr. Dubey • 51.72K Points
Coach

Q 84. When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(A) Redemption by drawing a lot
(B) Redemption out of capital
(C) Redemption out of profit
(D) Redemption by conversion.

M

Mr. Dubey • 51.72K Points
Coach

Q 85. When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account.

(A) Capital reserve
(B) Capital Redemption Reserve
(C) Debenture redemption reserve
(D) General Reserve.

M

Mr. Dubey • 51.72K Points
Coach

Q 86. For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐ ‐‐ basis.

(A) Ex‐Interest
(B) Cum‐Interest
(C) Own Debentures basis
(D) None of these.

M

Mr. Dubey • 51.72K Points
Coach

Q 87. When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐

(A) Profit and Loss Account
(B) General reserve
(C) Capital Reserve
(D) Sinking fund

M

Mr. Dubey • 51.72K Points
Coach

Q 88. No journal entry is required for the cancellation of ………. Share capital

(A) Unissued
(B) paid up
(C) Subscribed
(D) none

M

Mr. Dubey • 51.72K Points
Coach

Q 89. In subdivision of shares, …… capital does not change

(A) Paid up
(B) Issued
(C) unissued
(D) none

M

Mr. Dubey • 51.72K Points
Coach

Q 90. Rights shares are those shares which are __________.

(A) first offered to the existing shareholders
(B) issued by a newly formed company.
(C) issued to the directors of the company.
(D) issued to holders of convertible debentures.

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