Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. When shares issued at premium which of the following account is credited?
a. Share premium account
b. Share first call account
c. Share allotment account
d. Share forfeited account
Q. When the entire issue is underwritten by only one persone, it is called
a. Firm underwriting
b. Partial underwriting
c. Sole or Single Underwriting
d. None of the above
Q. When commission is due underwriter A/c is
a. Credited
b. Debited
c. Transfer to Capital A/c
d. None of the above
Q. A company issued 2000 equity shares which were underwritten by A. The company received applications for 2400 shares. Hence A will get his commission on the issue price of
a. 24000 shares
b. 2000 shares
c. 20000 shares
d. 2400 shares
Q. P Ltd. issued shares of Rs.100 each at Rs.95.The Underwriting Commission will be paid on
a. 100
b. 95
c. 195
d. 105
Q. Unmarked applications are known as
a. Direct application
b. Applications issued by the company
c. firm underwriting
d. Applications bearing the stamp of underwriter
Q. If the half of the issue of shares or debentures is underwritten it is known as
a. Complete or Full Underwriting
b. Sole Underwriting
c. Firm Underwriting
d. Partial Underwriting
Q. S Ltd. issued shares at the face value of Rs.1000 with a premium of Rs.200 per share. The underwriting commission will be calculated on
a. Rs.1000
b. Rs.900
c. Rs. 800
d. Rs.1200
Q. In order to spread risk of under subscription, The principal underwriters may appoint
a. Sub Underwriter
b. Sole Underwriter
c. Partial Underwriter
d. Principal Underwriter
Q. An additional commission is paid by the company to the principal underwriters to encourage
a. Firm Underwriter
b. Partial Underwriter
c. Sub Underwriter
d. Sole Underwriter
Q. In which case, liability arises from both open and firm underwriting
a. Partial Underwriter
b. Firm Underwriter
c. Sole Underwriter
d. Sub Underwriter
Q. How many individuals or institutions companies can appoint to manage the issue of its shares
a. One or more
b. Only one
c. Only five
d. Can not appoint
Q. If broker find subscribers, he gets
a. Commission
b. Subscription
c. Brokerage
d. Non of the above
Q. The unerwriting may be done by many underwriters in an agreed ratio,is known as
a. Sub Underwriter
b. Joint underwriter
c. Partial Underwriter
d. Firm Underwriter