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CBSE Class 12 Accountancy Accounting For Share Capital MCQs Set B

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Question: A Company is

  • a) All of the options
  • b) Has separate legal identity
  • c) Has Perpetual existence
  • d) Has Common seal

Answer: All of the options

 

Question: Restricts the right to transfer of shares for

  • a) Private company
  • b) Limited company
  • c) Both
  • d) None of the options

Answer: Private company

 

Question: Prohibits any invitation to public to subscribe for shares and Debentures for

  • a) Private company
  • b) Limited company
  • c) Both
  • d) None of the options

Answer: Private company

 

Question: Prohibits any invitation or acceptance of deposits from persons other than its members , directors or their relatives for

  • a) Private company
  • b) Limited company
  • c) Both
  • d) None of the options

Answer: Private company

 

Question: As per section 617 is a company in which more than 50% of paid up capital is held by Central or State Government or both, Called

  • a) Government Company
  • b) Private company
  • c) Limited company
  • d) Foreign Company

Answer: Government Company

 

Question: Section 591of Act states this type of company is incorporated outside India but has established business in India, Called

  • a) Foreign Company
  • b) Government Company
  • c) Private company
  • d) Limited company

Answer: Foreign Company

 

Question: Authorised Capital is also known as

  • a) Nominal or registered Capital
  • b) Share capital.
  • c) Called up Capital
  • d) None of the options

Answer: Nominal or registered Capital

 

Question: Which is the maximum amount of capital a company can issue

  • a) Authorised Capital
  • b) Share capital.
  • c) Called up Capital
  • d) None of the options

Answer: Authorised Capital

 

Question: Which is part of authorized capital

  • a) Issued Capital
  • b) Paid up capital
  • c) Called up Capital
  • d) None of the options

Answer: Issued Capital

 

Question: Capital raised by issue of shares is called

  • a) Share capital.
  • b) Authorised Capital
  • c) Called up Capital
  • d) None of the options

Answer: Share capital.


More Questions.........................................

 

Question: It cannot exceed authorized capital .

  • a) Issued Capital
  • b) Paid up capital
  • c) Share capital.
  • d) None of the options

Answer: Issued Capital

 

Question: Subscribed Capital is part of

  • a) Issued Capital
  • b) Share capital.
  • c) Paid up capital
  • d) Called up Capital

Answer: Issued Capital

 

Question: It is that part of uncalled capital which the company reserve to be called only upon winding up of company

  • a) Reserve Capital
  • b) Share capital.
  • c) Called up Capital
  • d) Called up Capital

Answer: Reserve Capital

 

Question: Capital Reserve is

  • a) Not available for distribution
  • b) Available for distribution
  • c) Both
  • d) None of the options

Answer: Not available for distribution

 

Question: How many classes of shares

  • a) 2
  • b) 3
  • c) 4
  • d) 5

Answer: 2

 

Question: Classes of shares is

  • a) Both
  • b) Preference shares
  • c) Equity shares
  • d) None of the options

Answer: Both

 

Question: Preference shares : are shares which get preferential right in respect of

  • a) Both
  • b) Right of dividend
  • c) Repayment of capital on winding up
  • d) None of the options

Answer: Both

 

Question: Shares can be issued

  • a) Both
  • b) for cash
  • c) for consideration other than cash
  • d) None of the options

Answer: Both

 

Question: Terms of issue of share

  • a) All of the options
  • b) Issue of shares at Par
  • c) Issue of shares at Premium
  • d) Issue of shares at Discount

Answer: All of the options

 

Question: First instalment paid along with application is called

  • a) Application money
  • b) Allotment Money
  • c) Both
  • d) None of the options

Answer: Application money

 

Question: When Second instalment paid

  • a) On allotment
  • b) On Application
  • c) Both
  • d) None of the options

Answer: On allotment

 

Question: Issues Of Shares At Premium means Issue Of Share At

  • a) More than face value
  • b) Face Value
  • c) Discount Value
  • d) Premium value

Answer: More than face value

 

Question: Issue Of Shares For Cash At Par Means shares are issued

  • a) Face Value
  • b) Premium value
  • c) Discount Value
  • d) None of the options

Answer: Face Value

 

Question: Issue Of Shares At Discount, Rate of discount should not be more than

  • a) 0.1
  • b) 0.05
  • c) 0.12
  • d) None of the options

Answer: 0.1

 

Question: Issue Of Shares At Discount, Sanction from company Law board must be obtained and shares must be issued within

  • a) 2 Months of permission
  • b) 3 Months of permission
  • c) 4 Months of permission
  • d) None of the options

Answer: 2 Months of permission

 

Question: Premium received on issue of shares is shown on

  • a) Equity and liabilities part of the balance sheet
  • b) Asset part of the balance sheet
  • c) Dr side in profit & loss A/c
  • d) Cr side in profit & loss A/c

Answer: Equity and liabilities part of the balance sheet

 

Question: Premium on issue of shares can be used for

  • a) Issue of fully paid bonus shares
  • b) distribution of profit
  • c) Transferred to general reserve
  • d) None of the options

Answer: Issue of fully paid bonus shares

 

Question: Balance in forfeited share account is shown in the balance sheet under the head of

  • a) Share capital.
  • b) Reserves and surplus
  • c) Current liabilities
  • d) None of the options

Answer: Share capital.

 

Question: If a share of Rs. 10 issued at a premium of Rs. 2 on which the full amount has been called and Rs. 2 (including premium) paid is forfeited, the share capital account should be debited with

  • a) Rs. 10
  • b) Rs. 6
  • c) Rs. 5
  • d) None of the options

Answer: Rs. 10

 

Question: When share are forfeited, share capital account is debited with

  • a) Called up value of shares
  • b) Nominal Value of shares
  • c) Paid up value of share
  • d) None of the options

Answer: Called up value of shares

 

Question: If the loss on reissue on shares is less than the amount forfeited, the surplus is transferred to

  • a) Capital Reserve
  • b) Revenue Reserve
  • c) Current liabilities
  • d) None of the options

Answer: Capital Reserve

 

Question: If on share of nominal value of Rs. 10, Rs. 10 have been called up and also received, it will be shown as

  • a) Subscribed and fully paid up
  • b) Subscribed but not fully paid up
  • c) Issued share capital
  • d) None of the options

Answer: Subscribed and fully paid up

 

Question: If on share of nominal value of Rs. 10, Rs. 8 have been called up and also received, it will be shown as

  • a) Subscribed but not fully paid up
  • b) Subscribed and fully paid up
  • c) Issued share capital
  • d) None of the options

Answer: Subscribed but not fully paid up

 

Question: A company can re-issue its seized shares

  • a) All of the options
  • b) At par
  • c) At premium
  • d) At discount

Answer: All of the options

 

Question: The meeting of the board of directors should be at least

  • a) Every Quarter
  • b) Every Year
  • c) Every month
  • d) None of the options

Answer: Every Quarter

 

Question: Premium on issues of shares determined by

  • a) Issuer Company
  • b) Company Law board
  • c) SEBI
  • d) None of the options

Answer: Issuer Company

 

Question: A Company can issue share on discount

  • a) After 1 Year of Company Starting
  • b) After 1 Year of Company Starting
  • c) After permission of Central Govt.
  • d) None of the options

Answer: After 1 Year of Company Starting

 

Question: When does need valuation of shares

  • a) Time of Merger
  • b) Admission of new Partner
  • c) Dissolution of Company
  • d) None of the options

Answer: Time of Merger

 

Question: Which company has special rights under Companies Act 3 (i) section (iii)

  • a) Private Company
  • b) Limited company
  • c) Illegal company
  • d) None of the options

Answer: Private Company

 

Question: A company is formed according to the provisions of Indian Companies Act,

  • a) 1956
  • b) 1932
  • c) 1952
  • d) None of the options

Answer: 1956

 


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