Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Preference shares, in case the holders of these have a right to convert their preference sharesinto equity shares at their option according to the terms of issue, such shares are called :
a. Cumulative Preference Share
b. Non-cumulative Preference Share
c. Convertible Preference Share
d. Non-convertible Preference Share
Q. Which shareholders have a right to receive the arrears of dividend from future profits :
a. Redeemable Preference Shares
b. Participating Preference Shares
c. Cumulative Preference Shares
d. Non-Cumulative Preference Shares
Q. Which shareholders are returned their capital after some specified time :
a. Redeemable Preference Shares
b. Irredeemable Preference Shares
c. Cumulative Preference Shares
d. Participating Preference Shares
Q. The following statements apply to equity/preference shareholders. Which one of them appliesonly to preference shareholders?
a. Shareholders risk the loss of investment
b. Shareholders bear the risk of no dividends in the event of losses
c. Shareholders usually have the right to vote
d. Dividends are usually given at a set amount in every’ financial year.
Q. Unless otherwise stated, a preference share is always deemed to be :
a. Cumulative, participating and non-convertible
b. Non-cumulative, non-participating and non-convertible
c. Cumulative, non-participating and non-convertible
d. Non-cumulative, participating and non-convertible
Q. The portion of the capital which can be called-up only on the winding up of the Company iscalled
a. Authorised Capital
b. Called up Capital
c. Uncalled Capital
d. Reserve Capital
Q. Capital included in the Total of Balance Sheet of a Company is called :
a. Issued Capital
b. Subscribed Capital
c. Called up Capital
d. Authorised Capital
Q. Reserve Capital is also known by :
a. Capital Reserve
b. Called up Capital
c. Subscribed Capital
d. None of the above
Q. In the Balance Sheet of a company, under the heading share capital, at the last is shown :
a. Authorised Share Capital
b. Subscribed Share Capital
c. Issued Share Capital
d. Reserve Share Capital
Q. Reserve Capital is a part of:
a. Paid-up Capital
b. Forfeited Share Capital
c. Assets
d. Capital to be called up only on liquidation of company
Q. Which of the following statements is true? (C.S. Foundation, Dec. 2012)
a. Authorised Capital = Issued Capital
b. Authorised Capital > Issued Capital
c. Paid up Capital > Issued Capital
d. None of the above
Q. In case of private placement of shares, to raise the amount of capital a company :
a. invites the public through prospectus
b. does not invite the public
c. invites the public through advertisement
d. invites the public through memorandum of association
Q. Shares issued by a company to its employees or directors in consideration of ‘IntellectualProperty Rights’ are called :
a. Right Equity Shares
b. Private Equity Shares
c. Sweat Equity Shares
d. Bonus Equity Shares
Q. Public subscription of shares include :
a. To Issue Prospectus
b. To Receive Applications
c. To Make Allotment
d. All of the Above
Q. Issue of shares at a price lower than its face value is called :
a. Issue at a Loss
b. Issue at a Profit
c. Issue at a Discount
d. Issue at a Premium