Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Persons who start a company are called ……………….
a. Shareholders
b. Directors
c. Promoters
d. Auditors
Q. Share Application Account is in the nature of:
a. Real Account
b. Personal Account
c. Nominal Account
d. None of the above
Q. If vendors are issued fully paid shares of 1,25,000 in consideration of net assets of?1,50,000, the balance of 25,000 will be credited to :
a. Statement of Profit & Loss
b. Goodwill Account
c. Security Premium Reserve Account
d. Capital Reserve Account
Q. Premium on the issue of shares should be shown :
a. On the Assets side of balance sheet
b. On the Equity & Liabilities side of balance sheet
c. In profit & loss Statement
d. None of the Above
Q. From which account, expenses on issue of shares will be written off first of all:
a. Statement of Profit and Loss
b. Miscellaneous Expenditure Account
c. Share Issue Expenses Account
d. Securities Premium Reserve Account
Q. Pro-rata allotment of shares is made when there is :
a. Under subscription
b. Oversubscription
c. Equal subscription
d. As and when desired by directors
Q. If applicants for 80,000 shares were allotted 60,000 shares on prorata basis, the shareholderwho was allotted 1,200 shares must have applied for :
a. 900 Shares
b. 3,600 Shares
c. 1,600 Shares
d. 4,800 Shares
Q. Discount allowed on re-issue of forfeited shares is debited to :
a. Share Capital A/c
b. Share forfeiture A/c
c. Statement of Profit & Loss
d. General Reserve A/c
Q. The balance of the forfeited shares account after re-issue of forfeited shares is transferred to :
a. Statement of Profit & Loss
b. Share Capital A/c
c. Capital Reserve A/c
d. General Reserve A/c
Q. Madhu Ltd. forfeited 800 shares of `10 each issued at 10% premium to Shyam (` 9 called up) on which he did not pay ` 3 of allotment (including premium) and first call of `2. Out ofthese, 600 shares were re-issued to Ram as fully paid up for `9 per share. What is to amount to be transferred to capital Reserve?
a. `2,400
b. ` 1,800
c. `3,000
d. `3,600
Q. Debenture holders are :
a. Owners of the Company
b. Debtors of the Company
c. Creditors of the Company
d. Promoters of the Company
Q. Debentures represent the :
a. Long-term Borrowings of a Company
b. The Investment of Equity-Shareholders
c. Directors’ shares in a company
d. Short-term Borrowings of a Company
Q. Zero Coupon Bonds are issued :
a. At Zero Interest Rate
b. With Specified Rate of Interest
c. Without Specified Rate of Interest
d. None of These
Q. Interest payable on debentures is :
a. an appropriation of profits of the company
b. a charge against profits of the company
c. transferred to sinking fund investment account
d. transferred to general reserve