Top 550+ Solved Corporate Accounting MCQ Questions Answer

From 496 to 510 of 596

Q. Premium on issue of debentures is a….

a. capital loss

b. capital profit

c. revenue profit

d. revenue loss

  • b. capital profit

Q. ------ is a document which either creates or acknowledges a debt.

a. debenture

b. trust deed

c. security

d. Articles of Association

  • a. debenture

Q. -------- debentures are secured by a charge on the assets of the company.

a. naked

b. simple

c. unsecured

d. mortgage

  • d. mortgage

Q. -------- is a document prepared by the company before the issue of prospectus to thepublic for subscription of debentures.

a. debenture

b. trust deed

c. abridged prospectus

d. call letter

  • b. trust deed

Q. Companies may issue debentures as security against loans taken from banks/financialinstitutions.

a. principal

b. primary

c. collateral

d. chargeable

  • c. collateral

Q. Discount on issue of debentures is a ---------

a. capital loss

b. capital profit

c. revenue loss

d. revenue profit

  • a. capital loss

Q. Which of the following is a method of redemption of debentures?

a. draw of lots

b. conversion

c. open market purchase

d. all of these

  • d. all of these

Q. Interest on debenture is -----

a. An appropriation of profit

b. a charge against profit

c. an adjustment of profit

d. none of these

  • b. a charge against profit

Q. After the redemption of debentures, any credit balance in the Sinking Fund a/c istransferred to -------- a/c.

a. general reserve

b. capital reserve

c. P&L

d. none of these

  • a. general reserve

Q. Dividend is paid on …..capital

a. called

b. paid up

c. issued

d. none of these

  • b. paid up

Q. In the case of joint stock companies , the assets and liabilities in B/S are arranged in theorder of …

a. serial number

b. performance

c. availability

d. none of these

  • b. performance

Q. Dividend declared in between two annual general meeting is called….

a. unclaimed dividend

b. interim dividend

c. proposed dividend

d. scrip dividend

  • b. interim dividend

Q. The amount set aside to meet the loss of bad debt is…

a. Liability

b. reserve

c. provision

d. contingent liability

  • c. provision

Q. Unclaimed dividend is shown in…

a. P/L Account

b. P/L Appropriation account

c. Balance sheet

d. None of these

  • c. Balance sheet

Q. Advance payment of tax is a….

a. Prepaid expense

b. general reserve

c. interim dividend

d. provision for taxation

  • a. Prepaid expense
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