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