Final Accounts of Companies

Shareholders of a company are given financial rewards called:

• Interest

• Profit from shares

• Dividends

• Allowance

Which TWO documents must a public limited company lodge with Registrar of Companies to form?

• Memorandum of Declaration

• Memorandum of Association

• Articles of Companies

• Articles of Association

Which of the following is NOT a feature of a debenture?

• A long term loan obtained by a company

• Debenture holders have no voting rights

• Receive a fixed rate of interest annually

• Doesn't actually need to be paid back if company chooses

Which of the following terms has this definition:

 

Legal and other expenses (printing, services of underwriters) that are incurred when a company is formed.

• Share Premium

• Goodwill

• Preliminary Expenses

• Bonus Shares

________ is the amount of capital issued to the shareholders.

• Paid up capital

• Called up capital

• Issued share capital

• Authorised capital

A __________ is a long-term loan which has a fixed rate of interest, payable irrespective of the profit of the company. It is also known as Loan Notes.

• Debenture

• Equity

• Reserves

• Ordinary shares

______________ entitle their shareholders to certain rights which ordinary shareholders do not enjoy.

• Dividend

• Ordinary shares

• Preference shares

• Debenture

___________ are profits ploughed back into the business. They are normally used for future expansion of the business, for example, a general reserve.

• Equity

• Preference shares

• Retained earnings

• Reserves

The nature of goodwill is?

• fictitious asset

• current asset

• long term liability

• intangible asset

An artificial person created by the law is called?

• Sole tradership

• Partnership form

• Company

• All of the above