WorksheetsAC C11 - Equity
Total questions: 15
Worksheet time: 8mins
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
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
Which shareholders are returned their capital after some specified time
Redeemable preference shares
Irredeemable preference shares
Cumulative preference shares
Participating preference shares
Bonus Shares are
Fully paid shares issued by the company.
Shares issued to the existing shareholders in proportion to existing shares they hold
Shares issued free of cost
All of the above
The shares which are so offered to the ______ are called ‘Right Shares’
new shareholders
existing debentureholders
existing shareholders.
To whom dividend is given at a fixed rate in a company?
To Equity shareholder
To Preference shareholder
To Debenture Holder
To Promoter
The bonus issue is made out of free reserves built out of the genuine profits or shares premium collected in case only.
True
False
