corporate accounting

The shares which are offered to the existing shareholders are called

• for paying dividends to member

• for issuing bonus share to member

• for writing off preliminary expenses of the company

• for writing off discount on issue of debentures

An issue of share that is not a public issue but offered to a selected group of persons is called

• public offer

• private placement of share

• Initial public offer

• bouns issue

Identify which of the follwing can be utilized for the redemption of preference share of a company out of profits

• share forfeited account

• general reserve

• development rebate reserve

• securities premium account

choose the correct formula for calculating goodwill under the simple average profit method

• goodwill=super profit*annuity factor

• goodwill=super profit*no of years purchase

• goodwill=average profit*no of years purchase

• goodwill=weighted average profit * no of years purchase

securities premium is shown in the balance sheet of a company under

• share capital

• reserves and surplus

• long term borrowings

• short term borrowings

the remuneration provided for managing director or whole time director under companies act 1956

• 11%

• 5%

• 3%

• 1%

which of the following method is not used for calculating the amount of purchase consideration?

• net payment method

• net assets method

• gross receipts method

• intrinsic value method

two companies A Ltd. and B Ltd. go into liquidation to form a new company C Ltd. It is

• amalgamation

• redemption

• absorption

• internal reconstruction

the restructuring of a company should be undertaken if

• the restructuring can prevent an unwanted takeover.

• the restructuring is expected to create value for shareholders.

• the restruturing is expected to increase the firm's revenue.

• the interests of bondholders are not negatively affected.

the captial reduction means reduction in___value of shares.

• issued capital

• called up capital

• uncalled capital

• paid-up value