Accounting for share Capital Test

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Accounting for share Capital Test - 21

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Weekly Quiz Competition

Question 1
1 / -0

In case of forfeiture of shares, a notice requiring payment of the amount together with any interest accurred must be served mentioning a further day not less than ________ from date of service of the notice.

A
$$7$$

B
$$10$$

C
$$14$$

D
$$15$$

Solution

As per Companies Act, at least 14 days of notice is required to be served to the shareholders only after which forfeiture of shares can be undertaken.
Since forfeiture leads to striking off the shareholder's name from the company's register, minimum numbers of days are to be given to repay the outstanding amount.
Artice of Association has provisions regarding Forfeiture of Shares.
Question 2
1 / -0

A share represents the extent of ownership or interest.

A
In the assets of the company

B
In the profits of the company

C
Both (A) and (B)

D
None of the above

Solution

A shareholder is also referred to as a member of a company. The shareholders are however entitled in proportion to their respective share, to a share of the distributable profits of the company and on a winding up to the surplus assets of the company after the creditors have been repaid.
Therefore, C is the correct option.
Question 3
1 / -0

Authorized capital, also known as __________.

A
nominal capital

B
paid up capital

C
issued capital

D
none of the above

Solution

Authorized capital is stated in the memorandum of association of the company. As per section 2(8) of the companies act, authorized capital or nominal capital means the capital as is authorized by the memorandum of the company. It is the maximum amount of share capital which a company can issue.
Question 4
1 / -0

The part of capital issued only at the time of liquidation of the company is _____________________.

A
Called up capital

B
Reserved Capital

C
Issued capital

D
Nominal capital

Solution

A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called 'Reserve Capital' of the company. It is available only for the creditors on winding up of the company.
Question 5
1 / -0

Issue of shares by Companies can be classified into _____________.

A
Two types

B
Three types

C
Four types

D
Five types

Solution

According to the companies' act, 2013, the shares of the companies are classified in two ways. Equity shares and preference shares.
Question 6
1 / -0

The company liquidator must submit a preliminary report to the tribunal within ___________ days from the winding up order.

A
$$16$$

B
$$15$$

C
$$60$$

D
$$50$$
Question 7
1 / -0

From the point of view of formation, there are three kinds of companies.
Which is incorrect?

A
Chartered Companies

B
Statutory Companies

C
Registered Companies

D
Limited Companies
Solution
According to companies act, 2013 , a company is classified on the basis of incorporation,number of members, guarantee of shares.etc. The companies which are listed on the basis of incorporation are:
Chartered companies.
Statutory companies.
Registered companies.
Hence, listed companies is incorrect.
Question 8
1 / -0

A share ________________.

A
May be fully paid up

B
May be partly paid up

C
Either (A) or (B)

D
Is always fully paid up

Solution

Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares.

A 'partly paid' share means that the shareholder has paid part of the issue price upfront and will pay the remaining amount in the future.
Question 9
1 / -0

When two or more existing companies combine, together to form a new company, it is ____________.

A
Absorption

B
Amalgamation

C
Reconstruction

D
Merger

Solution

As per Indian companies act, 2013, when two or more companies combine to form a new company, it is called as amalgamation. It is basically done to increase cash resources, to decrease competition etc.
Question 10
1 / -0

Share valuation is in inticate exercise involving _________________.

A
Accounting as well as non-accounting data

B
Objective and subjective consideration

C
Both (A) and (B)

D
None of the above

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Re-Attempt Weekly Quiz Competition

Accounting for share Capital Test - 21

Result

Accounting for share Capital Test - 21

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SHARING IS CARING

Question 1

$$7$$

$$10$$

$$14$$

$$15$$

Solution

Question 2

In the assets of the company

In the profits of the company

Both (A) and (B)

None of the above

Solution

Question 3

nominal capital

paid up capital

issued capital

none of the above

Solution

Question 4

Called up capital

Reserved Capital

Issued capital

Nominal capital

Solution

Question 5

Two types

Three types

Four types

Five types

Solution

Question 6

$$16$$

$$15$$

$$60$$

$$50$$

Question 7

Chartered Companies

Statutory Companies

Registered Companies

Limited Companies

Solution

Question 8

May be fully paid up

May be partly paid up

Either (A) or (B)

Is always fully paid up

Solution

Question 9

Absorption

Amalgamation

Reconstruction

Merger

Solution

Question 10

Accounting as well as non-accounting data

Objective and subjective consideration

Both (A) and (B)

None of the above

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