Practice Test

Q1) Nominal value of shares allotted to the public is called ______ capital. Show Answer

Q2) Paid up value of shares allotted is called___ capital. Show Answer

Q3) As per SEBI guidelines, the minimum amount payable on share application should be _______ of nominal value of share. Show Answer

Q4) As per Table A, the amount on call on a share must not exceed _____ percent. Show Answer

Q5) If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is_______. Show Answer

Q6) If the articles are silent regarding interest on calls-in-advance, the minimum rate of interest to be charged is _______. Show Answer

Q7) The document inviting offers from public to subscribe its share is called______. Show Answer

Q8) If shares are issued at its face value, it is called as issue at______. Show Answer

Q9) ______ is deducted from the share capital to know paid up value of shares. Show Answer

Q10) Interest on calls-in-arrears is ____ for the company. Show Answer

Q11) When shares are forfeited, share capital account is______. Show Answer

Q12) The excess price received over the par value of shares, should be ______to Securities Premium A/c. Show Answer

Q13) The shares which are redeemed after a particular period are called______. Show Answer

Q14) A share is a ______ property. Show Answer

Q15) Share capital of a joint stock company is a_____. Show Answer

Q16) A shareholder is a ______ of a joint stock company. Show Answer

Q17) Preference shares entitled to arrears of dividend are known as_____. Show Answer

Q18) The capital with which a company is registered is called_____. Show Answer

Q19) A person who purchases shares of a company is known as______. Show Answer

Q20) The amount of capital which is actually subscribed by the public is known as______. Show Answer

Q21) The shares which can claim the arrears of dividend in future are known as_______ shares. Show Answer

Q22) ______ capital is issued or used at the time of winding up of company. Show Answer

Q23) The liability of a shareholder of public limited company is limited. Show Answer

Q24) Equity shareholder enjoys preferential rights. Show Answer

Q25) Equity share is a guarantee of fixed rate of dividend. Show Answer

Q26) In private placement shares are issued to public through prospectus. Show Answer

Q27) Private placement method saves time and cost. Show Answer

Q28) In public issue whole amount of share capital is called at once. Show Answer

Q29) Shares are always issued at par. Show Answer

Q30) A public company can issue shares at only rate of discount. Show Answer

Q31) A public company forfeits share on non-payment of final call only. Show Answer

Q32) Forfeited shares are reissued at par only. Show Answer

Q33) Share forfeited balance is transferred to Capital Reserve Account. Show Answer

Q34) Shares are issued for cash only. Show Answer

Q35) Share Capital is a borrowed capital. Show Answer

Q36) Equity shareholders having voting rights on all matters. Show Answer

Q37) Share capital is an owned capital. Show Answer

Q38) Preference Shares can be redeemed after a certain period of time. Show Answer

Q39) Every company has to create Reserve Capital. Show Answer

Q40) Entire profit is distributed among the share holders as dividend. Show Answer

Q41) The market value of equity share is equal to its face value. Show Answer

Q42) Authorised Capital of a company is always equal to its face value. Show Answer

Q43) Nominal value of shares allotted to the public is called ______ capital. Show Answer

Q44) The balance of Share Forfeiture A/c is transferred to ...................... account after re-issue of these share. Show Answer

Q45) Premium received on issue of shares is shown to Show Answer

Q46) Shareholders get ...................... on shares. Show Answer

Q47) The document inviting to subscribe the shares of a company is ...................... Show Answer

Q48) As per SEBI guidelines minimum amount payable on share application should be ...................... of Nominal Value of shares. Show Answer

Q49) When shares are forfeited the Share Capital Account is ...................... Show Answer

Q50) The liability of shareholder in Joint Stock Company is ...................... . Show Answer

Q51) The Share Capital which a company is authorised to issue by its Memorandum of Association is ...................... . Show Answer

Q52) The unpaid amount on allotment and calls may be transferred to ...................... account. Show Answer

Q53) There must be provision in ...................... for forfeiture of shares. Show Answer

Q54) Directors can forfeit the shares for any reason Show Answer

Q55) Once the application money is received, directors can immediately proceed for allotment of shares. Show Answer

Q56) Joint stock company form of business organisation came into existence after industrial revolution. Show Answer

Q57) Equity shareholders get guaranteed rate of dividend every year. Show Answer

Q58) Face value of shares and market value of shares is always same. Show Answer

Q59) Sweat shares are issued to public Show Answer

Q60) In case of Pro-rata allotment the excess application money received must be refunded. Show Answer

Q61) Calls in Advance account is shown on the Asset side of the Balance sheet. Show Answer

Q62) The Authorised capital is also known as Nominal Capital. Show Answer

Q63) Paid-up capital can be more than Called up Capital. Show Answer

Q64) Joint Stock company can raise huge amount of capital. Show Answer

Q65) When shares are forfeited Shares Capital Account is credited. Show Answer

Q66) Directors can re-issue forfeited shares. Show Answer

Q67) When the issued price of share is Rs. 12 and face value is Rs. 10, the share is said to be issued at premium. Show Answer

Q68) Public limited company can issue its share without issuing its prospectus. Show Answer

Q69) Shares can be issued for consideration other than cash. Show Answer