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Corporate Accounting - Formation of Company

Total questions: 27

Worksheet time: 18mins

Name
Class
Date
1.

A company has ……………

a)

Separate Legal Entity

b)

no legal entity

c)

none of the above

2.

According to Companies (Amendment) Act 2000, a company limited by share can

issue _________ kinds of shares.

a)

1

b)

2

c)

3

3.

The public issue must be kept open for atleast

a)

3 days

b)

5 days

c)

7 days

4.

Minimum number of members in case of public company is---------.

a)

4

b)

5

c)

7

5.

Maximum number of members in public limited company is ---------------.

a)

10

b)

20

c)

unlimited

6.

Which one of the following is the registered capital of the company ?

a)

Paid-up capital

b)

Uncalled capital

c)

Authorised capital

7.

The part of the authorised capital not offered for subscription to the public is known as _________

a)

Unissued capital

b)

called up capital

c)

reserve capital

8.

Figure out the Order -

1. Issued Capital

2. Subscribed Capital

3. Authorised Capital

4. Paid Up Capital

5. Called Up Capital

a)

2, 3, 5, 1, 4

b)

2, 1, 3, 5, 4

c)

3, 1, 2, 5, 4

d)

3, 2, 1, 4, 5

9.

The maximum calls that a company can make is

a)

one

b)

two

c)

three

10.

Securities premium will appear in the _______side of the Balance Sheet.

a)

Asset

b)

Liability

c)

Assets & Liability

11.

Shareholders receive from the company :

a)

Interest

b)

Commission

c)

Dividend

12.

Equity shareholders are :

a)

Creditors of the company

b)

Owners of the company

c)

Customers of the company

13.

The shares which are offered to the existing shareholders are called

a)

for paying dividends to member

b)

for issuing bonus share to member

c)

for writing off preliminary expenses of the company

d)

for writing off discount on issue of debentures

14.

Tara Ltd. issued 120,000 shares. The issued was subscribed for 110,000 shares. This is a case of ______.

a)

Full Subscription of Shares

b)

Undersubscription of Shares

c)

Oversubscription of Shares

15.

Allotment shall be done within ______ days after receiving application money

a)

15

b)

50

c)

60

d)

45

16.

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

a)

Called up Capital

b)

Paid up Capital

c)

uncalled Capital

d)

Subscribed Capital

17.

The options granted by the company to its employees and employee directors at a price that is lower than the market price is (a)   .

18.

The application money should be refund within (a)   days from the closure of the issue.

19.

Debentures and shares are shown in balance sheet at

a)

Face value

b)

Discount

c)

Premium

d)

None of the above

20.

Full form of ESOP

4 lines
21.

Redeemable preference shares are redeemable within

a)

20 yrs

b)

7 yrs

c)

5 yrs

d)

None of the above

22.

Goodwill is

a)

Tangible Asset

b)

Intangible Asset

c)

Fictitious asset

d)

None of the above

23.

Minimum subscription should be received within _______ days from the date of opening the shares

a)

60

b)

120

c)

100

d)

80

24.

These shares are issued to promoters and their friends at the time of formation of a company

a)
  • Preference Shares

b)
  • Sweat Equity Shares

c)

Deferred Shares

d)
  • Bonus Shares

25.

Deferred Shares are also called

a)

Founders Shares

b)

Preference Shares

c)

Management Shares

d)

Sweat Shares

26.

Part of capital not issued and can be issued only at time of liquidation of the company

a)
  • Authorized Capital

b)

Reserve Capital

c)

Capital Reserve

d)
  • Subscribed Capital

27.

If Minimum subscription is not received, money so received to be returned to subscribers within ____ days

a)

20

b)

10

c)

15

d)

30