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WorksheetsAccounting for Limited Companies
Total questions: 10
Worksheet time: 4mins
Which of the following business usually maintain incomplete accounting records of their business activities?
Large Business
Partnership
Companies
Sole Trader
Which of the following transactions would have no impact on stockholders' equity?
Net loss
Dividends to stockholders
Investment of cash by stockholders
Purchase of land from the proceeds of bank loan
If company has word limited at the end of its names, this means that:
There are limited number of shares that can be issued.
The shareholders' liability for the debts of the business is restricted.
There is a limit to the amounts of the company can borrow.
The number of shareholders has a fixed upper limit.
In a limited company,
the liability of the company is limited.
the liability of the shareholders is limited.
the liability of both shareholders and company is limited.
none of the above.
A person who acquires shares in a company is known as ____________.
a director.
a creditor.
a partner.
a shareholder.
Which of the following items is NOT a distribution of profit for a limited company?
Ordinary dividend
Preference dividend
Debenture interest
Corporate tax
What is ordinary share capital?
The ordinary share capital can be defined as the largest amount of share capital that a company can issue.
The ordinary share capital is the minimum amount of share capital that the company can have and will set out the nominal value of each share.
The ordinary share capital would normally carry full voting rights and entitlement to a share of company profit in the form of dividends.
The ordinary share capital is the amount of capital that is actually paid by the shareholders.
Shareholders of a company are given financial rewards called:
Interest
Profit from shares
Dividends
Allowance
Retained earnings will change over time because of several factors. Which of the following factors explain an increase in retained earnings?
Net loss
Net income
Dividend paid
Investment
Which of the following is not an advantage of a company?
Separate legal entity
Continuity
Transferable ownership right
Corporate tax
