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Test: Company Accounts Issue Of Shares - 2


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20 Questions MCQ Test Accountancy Practice Tests: CUET Preparation | Test: Company Accounts Issue Of Shares - 2

Test: Company Accounts Issue Of Shares - 2 for Commerce 2022 is part of Accountancy Practice Tests: CUET Preparation preparation. The Test: Company Accounts Issue Of Shares - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Company Accounts Issue Of Shares - 2 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Company Accounts Issue Of Shares - 2 below.
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Test: Company Accounts Issue Of Shares - 2 - Question 1

______ Shares are not convertible.

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 1

Equity Shares are not convertible. Preference shares can be converted into equity shares depend upon the terms and conditions.

Test: Company Accounts Issue Of Shares - 2 - Question 2

Which type of capital will take place after the authorized capital?

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 2

Types of capital in order:
(a) Authorized Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Called up capital
(e) Paid up capital

Test: Company Accounts Issue Of Shares - 2 - Question 3

When a company makes an offer or invites the public in general to subscribe its shares, it is known as _______

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 3

When a company makes an offer or invites the public in general to subscribe its shares, it is known as Initial public offer (IPO).

Test: Company Accounts Issue Of Shares - 2 - Question 4

_______ is shown by way of deduction from subscribed capital while preparing notes to account.

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 4

Calls in arrears is shown by way of deduction from subscribed capital while preparing notes to account. At the time of preparation of Balance Sheet of a company, while ascertaining the amount of share capital by preparing notes to accounts, the amount of calls in arrears should be deducted from the subscribed capital (subscribed but not fully paid up).

Test: Company Accounts Issue Of Shares - 2 - Question 5

The capital which is part of the uncalled capital of the company which can be called up only in the event of its winding up it is called

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 5

Reserve Capital: It is uncalled capital which can be called up by the company in case of an emergency i.e. winding up. It is a part of Authorized Capital.

Test: Company Accounts Issue Of Shares - 2 - Question 6

When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 6

When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as Subscribed and fully paid up capital.

Test: Company Accounts Issue Of Shares - 2 - Question 7

Authorized share capital is also known as:

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 7

Authorised capital is also known as nominal capital. It refers to that amount which is stated in the Memorandum of Association.

Test: Company Accounts Issue Of Shares - 2 - Question 8

Which of the following represents the excess of issued price over the nominal value of shares?

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 8

When a company issues its shares at a price which is more than the actual face value, it is known as shares issued at premium.

Test: Company Accounts Issue Of Shares - 2 - Question 9

Which of the following statement is false

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 9

The Statement given as ‘Company is managed by all the members’ is not correct because it is not mandatory for all the members to run the company.

Test: Company Accounts Issue Of Shares - 2 - Question 10

Vinod Limited invited applications for subscription of 10,000 Equity shares @ Rs.10 each. Applications were received for 25,000 shares. This situation is called

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 10

When a company receives excess applications i.e. more applications than the shares offered for subscription, is called oversubscription of shares.

Test: Company Accounts Issue Of Shares - 2 - Question 11

Which of the following is not a situation of oversubscription or not concerned with over subscription?

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 11

Situations at the time oversubscriptions are:
1.Rejecting Excess Applications
2.Pro-rata allotment
3.Both Rejecting some applications and pro-rata allotment to remaining applicants
Note: Under subscription is a different situation, it is not concerned with over subscription

Test: Company Accounts Issue Of Shares - 2 - Question 12

What type of shares can be issued at discount?

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 12

As per the Companies Act, 2013, A company cannot issue its shares at discount except sweat equity shares.

Test: Company Accounts Issue Of Shares - 2 - Question 13

Find out the amount of second & final call When a company issue its shares @ 10 each at a premium of 30%. Payable on Application Rs.4. On Allotment Rs.4. On First Call Rs.2.

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 13

Total amount should be 10 + 30% i.e. 10 + 3 = 13
On Application Rs.4
On Allotment Rs.4
On First call Rs.2
Second & final call Rs.3

Test: Company Accounts Issue Of Shares - 2 - Question 14

A company can sell its shares only through___

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 14

A company can sell its shares only through stock exchange. Company should be listed in the stock exchange to sell its shares.

Test: Company Accounts Issue Of Shares - 2 - Question 15

__________ Shareholders have voting rights in all circumstances.

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 15

Equity Shareholders have voting rights in all circumstances. Preference shareholders have voting rights only in special situations.

Test: Company Accounts Issue Of Shares - 2 - Question 16

If buy back is made from free resources then what should be created __________

Test: Company Accounts Issue Of Shares - 2 - Question 17

Stages of Incorporation of company are 
a.Promotion
b.Capital subscription
c.Incorporation
d.Commencement of business
Arrange them in order

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 17

The Correct order is:
(a) Promotion
(b) Incorporation
(c) Capital Subscription
(d) Commencement of business

Test: Company Accounts Issue Of Shares - 2 - Question 18

Amount of Calls in Arrears will be deducted from______ under share capital.

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 18

The amount of Calls in Arrears should be deducted from Subscribe but not fully paid up under share capital, while preparing notes to accounts for share capital.

Test: Company Accounts Issue Of Shares - 2 - Question 19

Share capital is shown in the balance sheet under the heading of _______

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 19

Share capital is shown in the balance sheet under the heading of Shareholders’ Funds because share capital is that amount of capital which is contributed by the shareholders.

Test: Company Accounts Issue Of Shares - 2 - Question 20

The amount of capital that a company can issue at par value is called

Detailed Solution for Test: Company Accounts Issue Of Shares - 2 - Question 20

The maximum amount of share capital a company is allowed to raise is called its authorized capital.

The company must specify the total amount of equity it wants to raise and the base value of its shares, called the par value.

 For example, if a company obtains authorization to raise $5 million and its stock has a par value of $1, it may issue and sell up to 5 million shares of stock.

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