Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. Bonus shares are issued by ________ free reserves
a. generalizing
b. capitalizing
c. equalizing
d. none of these
Q. Bonus shares are issued out of _________
a. capital reserve
b. free reserve
c. share premium
d. none of these
Q. Right shares are issued to _________ shareholders
a. previous
b. existing
c. future
d. none of these
Q. Forfeiture of shares results in compulsory termination of ______ due to non-payment ofallotment/call money
a. allotment
b. membership
c. subscription
d. issue
Q. Securities premium account can be used for
a. paying tax liability
b. paying dividend on shares
c. allowing discount in reissue of forfeited shares
d. to write off preliminary expenses
Q. After the issue of forfeited shares, balance of forfeited shares account Is transferred to
a. capital reserves a/c
b. share capital
c. general reserves
d. profit & loss a/c
Q. Preference shares have priority over equity shares for
a. payment of dividend and repayment of capital
b. voting in annual general meeting
c. subscribe for new issue of shares and debentures
d. interest on money invested in company
Q. Debenture holders have right to receive _______ even if there is no profit
a. interest
b. commission
c. dividend
d. bonus
Q. Dividends are usually paid as a percentage of
a. authorized capital
b. net profit
c. paid up capital
d. called up capital