Top 550+ Solved Corporate Accounting MCQ Questions Answer

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Q. The excess price received on the par value of shares should be credited to ………….

a. Calls in advance A/c

b. Reserve Capital A/c

c. Security Premium A/c

d. None of these

  • c. Security Premium A/c

Q. Underwriting commission is classified as …………..

a. Capital Loss

b. Capita Expenditure

c. Revenue expenditure

d. Deferred revenue expenditure

  • d. Deferred revenue expenditure

Q. The profit on reissue of forfeited shares is transferred to ………

a. General reserve

b. Capital Redemption reserve

c. Capital reserve

d. Investment Allowance reserve

  • c. Capital reserve

Q. Preference shareholders are…………

a. Debtors of the company

b. Creditors of the company

c. Owners of the company

d. None of these

  • c. Owners of the company

Q. The shares firstly offered to the existing shareholders are called as ………….

a. Right shares

b. Bonus shares

c. Ordinary shares

d. None of these

  • a. Right shares

Q. The security premium account is shown in the balance sheet under the head……….

a. Share capital

b. Reserves & Surplus

c. Secured loans

d. Current liabilities

  • b. Reserves & Surplus

Q. ………..should be deducted from the share capital to determine the paid up capital.

a. Security premium

b. Calls in advance

c. Calls in arrears

d. Discount on issue

  • c. Calls in arrears

Q. The share capital account is debited with …………while forfeiting shares

a. Calls in arrears

b. Paid up capital

c. Called capital

d. Issued capital

  • c. Called capital

Q. Balance of forfeited share is …….

a. Revenue Reserve

b. Capital Reserve

c. Secret Reserve

d. Security Premium

  • b. Capital Reserve

Q. The forfeited shares can be reissued at …………

a. Par

b. Premium

c. Discount

d. All of these

  • d. All of these

Q. Discount on reissue of forfeited shares should not exceed ………….

a. Amount forfeited

b. Face value

c. Issued price

d. Market price

  • a. Amount forfeited
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