Question with Answer Commerce
1. 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
2. ................... 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
3. Shares which carry preferential rights are called ...............
A. Equity shares
B. Preference shares
C. Sweaty equity
D. Green shoe
Answer : B
4. 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
5. At present, a company limited by shares cannot issue...............preference shares.
A. Redeemable
B. Irredeemable
C. Convertible
D. None of these
Answer : B
6. Capital redemption reserve can be utilized for................
A. Declaring dividend
B. Writing of capital losses
C. Issue of fully paid up bonus shares
D. None of these
Answer : C
7. Which of the following is not a source of redemption of preference shares?
A. Divisible profit
B. Securities premium a/c
C. Realization of asset
D. Proceeds of fresh issue
Answer : C
8. Redemption of preference shares should not be regarded as reduction of..............capital of the company.
A. Paid-up
B. Called-up
C. Subscribed
D. Authorized
Answer : D
9. Under the scheme of buyback of shares, the company in order to perform its obligations, is required to open an...............account.
A. Fixed deposit
B. Escrow deposit
C. Saving deposit
D. Current deposit
Answer :B
10. Debenture holders are...............of the company.
A. Owners
B. Creditors
C. Both A and B
D. None of these
Answer : B
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