MCQs Commerce
1. Right shares are those shares which are issued to:
A. Directors
B. Promoters
C. Existing shareholders
D. None of these
Answer : C
2. The profit on reissue of shares is transferred to .............
A. General reserve
B. Capital reserve
C. P/L account
D. P/L appropriation account
Answer : B
3. Voluntary return of shares by shareholders to the company for cancellation is called:
A. Transfer of shares
B. Forfeiture of shares
C. Surrender of shares
D. Buyback of shares
Answer : C
4. Stock is a consolidation of.............. Shares .
A. Partly paid
B. Fully paid
C. Equity
D. Sweat
Answer : B
5. Preference shareholders are entitled to a fixed rate of.........
A. Interest
B. Dividend
C. Coupon
D. Capital
Answer : B
6. ............. Is deducted from the called-up capital in order to calculate paid-up capital .
A. Calls in arrear
B. Calls in advance
C. Uncalled capital
D. Reserve capital
Answer : A
7. On forfeiture of shares, which of the following account is credited with the amount of money already received on such shares?
A. Shares forfeited a/c
B. Share capital a/c
C. Unpaid calls a/c
D. Share premium a/c
Answer : A
8................... Implies issue and allotment of shares to a selected group of persons and not to general public.
A. Initial public offer
B. Right issue
C. Private placement
D. Preemptive right
Answer : C
9. Shares which carry preferential rights are called ...............
A. Equity shares
B. Preference shares
C. Sweaty equity
D. Green shoe
Answer : B
10. Preference shares can be redeemed................
A. If they are fully paid up
B. If they are partly paid up
C. If they are convertible
D. None of these
Answer : A
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