Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. A debenture holder is entitled to :
a. Fixed dividend
b. Share in profits
c. Voting rights in the company
d. Interest at the fixed rate
Q. On liquidation of company, principal amount of debentures is returned :
a. First of All
b. Last of All
c. Before Equity Capital
d. After Equity Capital
Q. Which of the following statements is false?
a. Debenture is a form of public borrowing.
b. It is customary to prefix debentures with the agreed rate of interest.
c. Debenture interest is a charge against profits.
d. The issue price and redemption value of debentures cannot differ.
Q. Which of the following is not a characteristic of Bearer Debentures?
a. They are treated as negotiable instruments.
b. Their transfer requires a deed of transfer.
c. They are transferable by mere delivery.
d. The interest on it is paid to the holder irrespective of identity.
Q. Which of the following statements is false?
a. At maturity, debenture holders get back their money.
b. Debentures can be forfeited for non-payment of call money.
c. In company’s balance sheet, debentures are shown under the head Long term Borrowings.
d. Interest on debentures is a charge against profits
Q. Which of the following statements is false :
a. A Company can issue redeemable debentures.
b. A Company can issue debentures with voting rights.
c. A Company can issue convertible debentures.
d. A Company can buy its own debentures and shares.
Q. The Principal amount of debentures will be repaid by the company either at the end of aspecified period or by instalments during the life time of the company. Such types of debentures are called :
a. Redeemable Debentures
b. Irredeemable Debentures
c. Convertible Debentures
d. Bearer Debentures
Q. The debentures whose principal amount is not repayable by the company during its life time,but the payment is made only at the time of Liquidation of the company, such debentures are called :
a. Bearer Debentures
b. Redeemable Debentures
c. Irredeemable Debentures
d. Non-Convertible Debentures
Q. Debenture Application Account is in the nature of
a. Real Account
b. Personal Account
c. Nominal Account
d. None of the above
Q. Discount on issue of Debentures is in the nature of
a. Revenue loss
b. Capital loss
c. Deferred Revenue Expenditure
d. None of the above
Q. Premium received on issue of debentures may be utilised for
a. For writing off discount allowed on issue of shares
b. For writing off premium allowed on redemption of debentures
c. For writing off preliminary expenses
d. For All of the Above
Q. If the rate of G/P is 25% of sales and the cost of goods sold is ` 150000, the amount of G/Pwill be
a. `30000
b. `25000
c. `40000
d. `50000
Q. Share application account is classified as
a. Real account
b. Personal account
c. Impersonal account
d. Nominal account
Q. The minimum share application is
a. 1% of the face value
b. 5% of the face value
c. 10% of the face value
d. 25% of the face value
Q. The excess price received on the par value of the shares should be credited to
a. Calls in advance
b. Reserve capital account
c. Security premium reserve account
d. None of these