Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Which of the following are applications of funds?
a. Payment of dividend on share capital
b. Payment of tax
c. Increase in working capital
d. All of the above
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
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
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
Q. Balance of forfeited share is …….
a. Revenue Reserve
b. Capital Reserve
c. Secret Reserve
d. Security Premium
Q. When shares are issued at a price higher than their face value, it is called issue at…………..
a. Par
b. Premium
c. Discount
d. None of these
Q. The shares of a company only can be forfeited after giving a ………days notice
a. 21
b. 14
c. 7
d. 30
Q. Which of the following is an example for capital profit?
a. Capital Reserves
b. Security premium
c. Forfeited shares
d. All of these.
Q. Security premium account can be utilized for ………….
a. Issuing fully paid bonus shares
b. Write off preliminary expenses
c. Write off underwriting commission
d. All of these
Q. . …………..is that portion of issued capital which is applied for by the public.
a. Issued capital
b. Subscribed capital
c. Nominal Capital
d. Paid up capital
Q. . ……………is an instrument of acknowledgment of debt.
a. Equity share
b. Preference Share
c. Debenture
d. All of these
Q. Debenture represents ………. Of a company
a. Borrowed capital
b. Owned capital
c. Hybrid capital
d. None of these