Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. At present, a company limited by shares cannot issue …..preference shares
a. redeemable
b. irredeemable
c. convertible
d. none of these
Q. Capital redemption reserve is created out of
a. Dividend equalization fund
b. P/L account
c. General reserve account
d. All of these
Q. Capital redemption reserve can be utilized for…
a. declaring dividend
b. writing of capital losses
c. issue of fully paid up bonus shares
d. none of these
Q. ------- profit means profit which would otherwise be available for distribution ofdividend.
a. capital
b. gross
c. net
d. divisible
Q. Which of the following is not a source of redemption of preference shares?
a. divisible profit
b. securities premium a/c
c. realization of asset
d. proceeds of fresh issue
Q. The nominal value of preference shares to be redeemed can be provided out of ------
a. general reserve
b. capital reserve
c. CRR
d. securities premium
Q. Redemption of preference shares should not be regarded as reduction of ----- capital ofthe company.
a. paid-up
b. called-up
c. subscribed
d. authorized
Q. Buyback of shares should not exceed ….percent of paid up capital and free reserve of thecompany.
a. 50%
b. 10%
c. 5%
d. 25%
Q. Under the scheme of buyback of shares , the company in order to perform its obligations , is required to open an ….account
a. fixed deposit
b. escrow deposit
c. savings deposit
d. current deposit
Q. Loss on issue or discount on issue of debenture is a…..asset
a. tangible
b. current
c. fictitious
d. none of these
Q. When debentures are redeemed out of profits, an amount equal is transferred to…..
a. CRR
b. capital reserve
c. revenue reserve
d. debenture redemption reserve
Q. Profit on sale of sinking fund investment is credited to ….
a. general reserve
b. capital reserve
c. sinking fund
d. none of these
Q. When own debentures are cancelled any profit on cancellation is transferred to …
a. general reserve
b. capital reserve
c. P/L Account
d. none of these