Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. A private invitation to the public to purchase shares of a company is called:
a. Prospectus
b. Audit Report
c. Article of Association
d. Memorandum of Association
Q. A document which gives company’s relationship with outside world is called:
a. Articles of Association
b. Memorandum of association
c. Prospectus
d. Statement in lieu of Prospectus
Q. A share of a public company is:
a. Non-refundable
b. Non-transferable
c. Transferable
d. Not allottable
Q. Share premium money can be used for:
a. Payment of dividend
b. Writing off Goodwill
c. Issue of fully paid bonus shares
d. none
Q. Discount allowed on reissue of forfeited shares is debited to:
a. Discount on issue of shares account
b. Forfeited Shares account
c. Profit & Loss Account
d. Suspense Account
Q. The balance of the forfeited shares account after reissue of forfeited shares account is transferred to:
a. Capital Reserve Account
b. Share Capital Account
c. Profit and Loss Account
d. Suspense Account
Q. If a share of Rs.10, on which Rs. 6 has been paid, is forfeited, it can be reissued at the minimum price of:
a. Rs. 6 per share
b. Rs. 4 per share
c. Rs. 10 per share
d. Rs. 16 per share
Q. A situation where accompany receives application for a greater number of shares than offered to the public for s7ubscription is termed as:
a. Undersubscription
b. Oversubscription
c. Normal Subscription
d. none
Q. Transferability of share is permitted by:
a. All companies
b. Only private companies
c. All public companies
d. Only Government companies
Q. Share Application account is a
a. Real Account
b. Nominal Account
c. Mixed Account
d. Personal Account
Q. A company can issue sweat-equity shares to:
a. The directors of the company only
b. The employees of the company only
c. The directors and the employees of the company
d. The bankers and creditors of the company