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Corporate Accounting (A)

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

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

2.

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

a)

public offer

b)

private placement of share

c)

Initial public offer

d)

bouns issue

3.

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

a)

share forfeited account

b)

general reserve

c)

development rebate reserve

d)

securities premium account

4.

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

a)

goodwill=super profit*annuity factor

b)

goodwill=super profit*no of years purchase

c)

goodwill=average profit*no of years purchase

d)

goodwill=weighted average profit * no of years purchase

5.

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

a)

share capital

b)

reserves and surplus

c)

long term borrowings

d)

short term borrowings

6.

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

a)

11%

b)

5%

c)

3%

d)

1%

7.

Which of the following is not a method of share issue for companies who have not gone public

a)

Right issue

b)

Private placement

c)

IPO

d)

Loan issue

8.

Which of the following regarding bonus issue is true

a)

To attract new investment prospects

b)

To use up cash reserves of the company

c)

To reduce chance of take over bids from rival companies

d)

To reduce capital base of th3 company

9.

As per U/S 62 Companies Act 2013 the offer for right issue shall be declared for shareholders within which time frame

a)

Fifty to sixty days

b)

Fifteen to thirty days

c)

Thirty to fifty days

d)

Five days to fifteen days

10.

ESOP means

a)

Options given to employees of a company the right to purchase shares at future date and pre determined price

b)

Shares given to employees for future use

c)

Shares given to employees to enlarge salary package

d)

Shares at a discount