AC C11 - Equity

Dividend on equity shares payable on priority basis.

• true

• false

Preference shares are paid dividend after paying dividend to equity shares.

• true

• false

It refers to the owner’s claim to the assets of the business

• Accounting

• Assets

• Liabilities

• Owner's Equity

What are stocks?

• Shares of ownership in a corporation.
• Shares of trading in a corporation.
• Bonds with potential to make money.
• Bonds that are traded.

Why do companies issue stocks?

• To create and investment opportunity into other businesses.
• To increase employee cooperation and an operating level.
• To be traded individually
• To raise money for economic investment and to fund operating costs.

The return of a share holder is

• Rate of interest

• Dividend

• Discount rate

• Discount value

Which of the following is not a characteristic of the corporate form of organization?

• Separate legal existence

• Unlimited liability for shareholders

• Easy transferability of ownership interests

• Ability to obtain large amounts of capital easily

Which of the following best describes retained earnings?

• Cash available for dividends.

• The amount initially invested in the business by stockholders.

• Cash available for expansion and growth.

• Income that has been reinvested in the business rather than distributed as dividends to stockholders.

A Co. has issued 6,000 equity shares of $10 each at par and called up amount $6 per share. The remaining part of capital is termed as

• Called up Capital

• Paid up Capital

• Uncalled Capital

• Subscribed Capital

Preference shareholders have

• Preferential right as to dividend only

• Preferential right in the management

• Preferential write as to repayment of capital at the time of liquidation of the company

• Preferential right as to dividend and repayment of capital at the time of liquidation of a company