Corporate MCQ

1. The accumulated funds or money collected by a company by issuing its shares is generally known as______.

A) Debt Capital

B) Shares Capital

C) Working Capital

D) Investment Capital

B) Shares Capital

2.Capital of a company is split into smaller units termed as______.

A) Bonds

B) Shares

C) Dividend

D) Debentures

B) Shares

3. The share of profit a shareholder will receive is called.

A) Dividend

B) Surplus

C) Net Profit

D) Retained profit

A) Dividend

4) The investors subscribing to equity shares are termed as______ of the company.

A) Proprietor

B) Promoter

C) Shareholders

D) Prescriber

C) Shareholders

5) Holders of equity shares are the______ of a company.

A) Owners

B) Registrars

C) Promoters

D) Employees

A) Owners

6)_______have the unique characteristics of being hybrid in nature.

A) Right Share

B) Bonus Share

C) Equity Share

D) Preference Shares

D) Preference Shares

7) The payment of fixed amount of_____ compulsory in the case of preference shares.

A) Debt

B) Loss

C) Dividend

D) Dues

C) Dividend

8)_______means capital raised by issuing shares of a company. 

a) Debt Capital

b) Shares Capital

c) Working Capital

d) Investment Capital

b) Shares Capital

9) Which section of the Companies Act, 2013, defines the shares?

a) Section of 2(45)

b) Section of 2(84)

c) Section of 2(47) 

d) Section of 2(48)

b) Section of 2(84)

10) A part of the issued capital which is subscribed by the public is known as______.

a) Issued Capital

b) Authorised Capital

c) Subscribed Capital

d) Called-up Capital

c) Subscribed Capital

11) Equity shares are also termed as ______.

a) Preference Shares

c) Bonus Shares

b) Ordinary Shares 

d) Deferred Shares

b) Ordinary Shares

12) Which of the following shares have certain features of equity and at the same time certain features of debentures?

a) Ordinary Shares

b) Bonus Shares 

c) Deferred Shares

d) Preference Shares

d) Preference Shares

13) Which of the following is not a type of equity share? 

a) Blue Chip Shares

b) Growth Shares

c) Redeemable Shares

d) Income Shares

c) Redeemable Shares

14) Preference shares has a preferential right with respect to:

a) Payment of Dividend

c) Repayment of Capital

b) Decision Making

d) Both (a) and (b)

d) Both (a) and (b)

15) Portion of uncalled share capital which shall be called-up at the time of company wind-up is called______.

a) Reserve Capital

b) Capital Reserve

c) Called-up Capital

d) Authorised Capital

a) Reserve Capital

16) The maximum amount with which the company is registered is called______.

a) Authorised Capital 

b) Issued Capital

c) Paid-up Capital

d) Called-up Capital

a) Authorised Capital

17) What is called when a part of authorised capital, is offered to the public for subscription?

a) Authorised Capital

b) Issued Capital

c) Paid-up Capital

d) Reserve Capital

b) Issued Capital

18) Which type of share belong to financially and operationally sound companies with perfect track record of dividends and earnings?

a) Speculative Shares

b) Defensive Shares

c) Blue Chip Shares

d) Growth Shares

c) Blue Chip Shares

19) Which section defines preference shares as per Companies Act, 2013?

a) Section 40(b)

b) Section 43(b)

c) Section 42(b)

d) Section 46(b)

b) Section 43(b)

20) The portion of the face value of the share which the shareholders are called upon to pay is termed as ______.

a) Called-up Capital 

b) Subscribed Capital

C) Reserve Capita

d) Issued Capital

a) Called-up Capital

21) What is called when a part of called-up capital is actually paid by the shareholders?

a) Called-up Capital

b) Paid-up Capital

c) Reserve Capital

d) Issued Capital

b) Paid-up Capital

22) Which of the following is not a type of preference share?

a) Non-Cumulative Preference Shares

b) Convertible Preference Shares

c) Redeemable Preference Shares

d) Cyclical Preference Shares

d) Cyclical Preference Shares

23) As per the provisions of ________of the Companies Act. 2013 a company can issue shares at a premium.

a) Section 50

b) Section 52

c) Section 53

d) Section 56

b) Section 52

24) X Ltd. invited application for 10,000 shares of the value of ₹10 each. The amount is payable as ₹2 on application and ₹5 on allotment and balance on First and Final Call. Calculate the amount of first and final call.

a) ₹10,000

b) ₹30,000

c)  20,000

d) 50,000

c)  20,000

25) A company offers 8,000 shares of 10 each. Applications are received for full 8,000 shares. Money payable on first call is 2 per share. The bank account should be debited with _____ in case of money received on first call.

a) 80,000

b) 64,000

c) 16,000

d) 96,000

b) 64,000

26) In the absence of a specific information securities premium is called along with_____.

a) First call

c) Final call

b) Allotment

d) Applicatation

b) Allotment

27) According to Table F of the Companies Act, 2013. in calls-in-advance, interest at the rate of ____per annum.

a) 5 percent

b) 10 percent

c) 12 percent

d) 15 percent

c) 12 percent

28) ABC Company Limited issued 1,00,000 equity shares payable in fully paid shares of 10 each at once and at a premium of 10%. What amount will be credited in securities premium account?

a) 1,00,000

b) 10,00,000 

c) 10,000

d) 11,00,000

c) 1,00,000

29) ABC Ltd. offered 50,000 shares of 10 each to the public payable as: 2 on application, 3 on allotment, 2 on First call and the balance as and when required. All the shares were applied for and duly allotted but Mahi a shareholder holding 200 shares paid the entire balance on allotment. What will be the amount of calls-in-advance on allotment?

a) 200

b) 300

c) 500

d) 1,000

d) 1,000

30)____indicate the amount of called-up money, which has not been received in full.

a) Final Calls

b) Unpaid Calls

c) Calls-in-Arrears 

d) Calls-in-Advance

c) Calls-in-Arrears 

31) According to Table F of the Companies Act, 2013, in calls-in-arrear, interest at the rate of _____per annum.

a) 5 percent 

b) 10 percent

c) 12 percent

d) 15 percent

b) 12 percent

32) Interest rate on ______is to be charged on unpaid calls for the period intervening between the due date of the call and the time of actual payment.

a) First Call

b) Final Call

c) Calls-in-Arrears

d) Calls-in-Advance

a) Call-in-arrears

33) What is called if the company decides to call the share money in more than two instalments the other instalment?

a) Call Money

b) Advance Money

c) Allotment Money

d) Application Money

b) Call Money

34) What will be debited when any installment is not received?

a) Final Calls

b) Unpaid Calls

c) Calls-in-Arrears

d) Calls-in-Advance

c) Calls-in-Arrears

35) In case purchase price is less than the net value of assets the balance is credited

a) Goodwill

b) Capital Reserve 

c) General Reserve

d) Securities Premium

b) Capital Reserve

36) In case purchase price is more than the net value assets the balance is debited to___.

a) Goodwill

b) Capital Reserve

c) General Reserve

d) Securities Premium

a) Goodwill

37) ABC Ltd. purchased assets of ₹95,000 from C Bros. It issued equity shares of 10 each fully paid. If issue are made at a premium of 25%. Securities premium account is credited with

a) 76,000

b) 95,000

c) 19,000

d) 90,000

c) 19,000

38) When a company issues its shares at a price above their face value, it is called the issue of____.

a) Shares Issued at Par 

b) Shares Issued at Premium

c) Shares Issued at Discount

d) Over-Subscription of Shares

b) Shares Issued at Premium

39) The company can issue shares at_______.

a) Par, Premium, Discoun

b) Only Par and Discount

C) Only Premium and Discount

d)  Only Par and Premium

d)  Only Par and Premium

40) The first. installment which the applicants have to pay along with the applications for shares is known as _______.

a) Call Money

b) Application Money

c) Allotment Money

d) Advance Money

b) Application Money

41) On the allotment of shares the allottees are required to pay the second installment which is termed as _______.

a) Advance Money

b) Application Money

c) Allotment Money

d) Call Money

c) Allotment Money

42) If the number of shares applied for is less than the number of shares issued by the company, the shares are said to be_______.

a) Under-Subscription

b) Over- Subscription

c) Minimum-Subscription

d) Maximum-Subscription

a) Under-Subscription

43) Under which cases pro rata allotment is applicable?

a) Under-Subscription

b) Over- Subscription

c) Minimum-Subscription

d) Maximum-Subscription

b) Over- Subscription

44) Which entry is for the allotment money becomes due?

a) Bank A/c     Dr. 

     To Shares Allotment A/c

b) Shares Allotment A/c   Dr.

     To Shares Capital A/c

c) Shares Capital A/c Dr.

    To Shares Allotment A/c

d) Shares Allotment A/c Dr. 

     To Bank A/c

b) Shares Allotment A/c   Dr.

     To Shares Capital A/c

45) This entry is passed for which transaction?

 Bank A/c                Dr.

     To Shares Final Call A/c

a) Final Call Money is Received

b) Final Call is Due

c) Final Call is Refunded

d) Final Call is Applied

a) Final Call Money is Received

46) When shares are allotted, the amount to be credited will be:

a) Shares Application Account 

b) Shares Capital Account

c) Bank Account

d) Shares Allotment Account

b) Shares Capital Account

47) The call-in arrears are shown in the balance sheet under the head___. 

a) Reserves and Surplus

b) Unsecured Loans

c) Shares Capital 

d) Current Liabilities and Provisions

c) Shares Capital 

48) Which entry to be made in the book if First Call is due? 

(a) Shares Capital A/c   Dr.

          To Shares First Call A/c 

b) Shares First Call A/c.  Dr.

      To Shares Capital A/c

c) Shares First Call A/c     Dr.

       To Bank A/c

d) Shares Capital A/c       Dr.

      To Share Allotment. A/c

b) Shares First Call A/c.  Dr.

      To Shares Capital A/c

49) If shares are issued at premium, what will be credited?

a) Shares Capital Account 

b) Securities Premium Account

c) Bank Account

d) Both (a) and (b)

d) Both (a) and (b)

50) Premium received on issue of shares are shown under the head____ Balance Sheet: 

a) Reserve and Surplus

b) Current Liabilities and Provisions

c) Shares Capital 

d) Contingent Liabilities 

a) Reserve and Surplus