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Introduction to Corporation

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is the characteristics of corporations?

a)

unlimited liability

b)

no mutual agency

c)

tax were imposed on owner's personal income only

2.

Who will be running the business in corporation?

a)

owners

b)

shareholders

c)

board of directors

d)

officers

3.

What is Memorandum of Association?

a)

document that governs the relationship between the company and outsider

b)

fees that incurred in order to form a corporation

c)

set of rules for internal company management

d)

certain percentage of corporation tax

4.

Which is true about public companies?

a)

2-50 members

b)

shares can only be offered to certain group of people

c)

shares can be offered publicly

5.

directors of a corporation are paid ____ as compensation for their services

a)

audit fees

b)

Preference shares

c)

Directors’ remuneration

d)

share premium

6.

Interest of debentures will appear in the?

a)

SOFP- non-current liabilities

b)

SOFP- Reserves

c)

SOPL- Appropriations

d)

SOPL- Expenses

7.

when shares are issued at a price above the par value, the excess amount is known as____

a)

Share premium

b)

Share capital

8.

Issued shares is 30,000@RM1, Unissued shares is 50,000 @RM1, then how much is the authorized shares (RM)?

no need to put RM

(a)  

9.

During liquidation, the ___ shareholders will be the last to receive their assets and the repayment of the amount invested.

a)

Preference

b)

Ordinary

10.

The journal entry to record the revaluation reserves is as:

a)

Dr revaluation reserve

Cr non-current assets

b)

Dr current assets

Cr revaluation reserves

c)

Dr non-current liabilities

Cr revaluation reserves

d)

Dr non-current assets

Cr revaluation reserves

11.

The differences between the current value of non-current assets and its original value is called?

a)

Share premium

b)

Retained earnings

c)

Revaluation reserves

d)

Corporation tax

12.

Choose the correct example for capital reserves

a)

General reserve

b)

Retained earnings

c)

Share premium

d)

Authorised shares

13.

A company need to pay taxes

a)

at accounting period

b)

before accounting period

c)

after accounting period

14.

what is interim dividends?

a)

a final dividend that normally an amount payable of the financial year

b)

percentage of profit that is declared and paid to shareholders during a year

c)

a percentage of profit that is proposed by board of director and approved by the shareholders at company's annual general meeting to be paid out as final dividend to shareholders.

15.

Taxes can be categorized as

a)

revenue to company

b)

capital to company

c)

expenses to company

d)

asset to company

16.

What are items in appropriation section in SOPL?

a)

taxes

b)

net income after taxes

c)

net sales

d)

dividend interim