Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio
Last Answer : A. Net profit before interest, tax and dividend / Capital employed
Description : The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares
Last Answer : B. Preference Shares
Description : Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend
Last Answer : D. for distribution of dividend
Description : Premium on issue of shares can be used for -----------. A. distribution of dividend B. writing of f capital losses C. transferring to general reserve D. paying fees to directors
Last Answer : B. writing of
Description : Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares
Last Answer : B. Equity shares
Description : Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares
Last Answer : a) Dividend
Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors
Last Answer : Answer: Equity Shareholders
Description : A company pays dividend at the A. End of the week B. End of the financial year C. End of the month D. All of the above
Last Answer : B. End of the financial year
Description : Assertion (A) :The liability of share holders in a private limited company is limited to the amount. Reason (R) :The number of share holders of a private limited company is limited to fifty. A. Both A and R are ... correct explanation of A C. A is true but R is false D. A is false but R is true
Last Answer : D. A is false but R is true
Description : Liabilities (not accumulated profits) of a company include— A. General reserve B. Pension fund C. Dividend equalisation fund. D. Retain earning
Last Answer : B. Pension fund
Description : Which is not the form of dividend? A. Regular B. Stock C. Property D. Zero Dividend
Last Answer : D. Zero Dividend
Description : Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital
Last Answer : A. Cash Dividend
Description : Which is the form of dividend? A. Cash dividend B. Bond dividend C. Stock dividend D. All of these
Last Answer : D. All of these
Description : Dividend Policy must be A. Flexible B. Flexible and Fixed both C. Fixed D. All of the above
Last Answer : A. Flexible
Description : Dividend policy of a company mainly concern with (i) dividend payout and (ii) Stability of dividend A. Only (i) is correct B. Only (ii) is correct C. Both (i) and (ii) are correct. D. Both (i) and (ii) are incorrect.
Last Answer : C. Both (i) and (ii) are correct.
Description : Dividend is paid on _______ A. On Issued Share Capital B. On Subscribed Share Capital C. On Called up Share Capital D. On Paid up Share Capital
Last Answer : D. On Paid up Share Capital
Description : Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid
Last Answer : D. Computed on Dividend paid
Description : A newly established company cannot be successful in obtaining finance by way of A. issue of equity capital B. issue of preference share C. issue of debenture D. None of the above
Last Answer : C. issue of debenture
Description : In the calculation of return on shareholders investments the referred investment deals with A. All reserves B. Preference and equity capital only C. All appropriations D. All of the above
Last Answer : D. All of the above
Description : The first item in order of payment to be made by liquidator is A. Liquidation expenses B. Secured creditor C. Preferential creditor D. Preference shareholder
Last Answer : A. Liquidation expenses
Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account
Last Answer : (A) Preference shareholders Account
Description : Part of company‟s earning or profit which is paid out to share holders is known as _______ A. Premium B. Dividend C. Bonus D. Sum Assured E. Return
Last Answer : B. Dividend Explanation: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest ... business (called retained earnings), and pay a fraction of the profit as a dividend to shareholders.
Description : For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. A. 51% B. 90% C. 99% D. 100%
Last Answer : B. 90%
Description : Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to ... paid in equity shares by the transferee company except for fraction shares. D. All of the above
Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit
Last Answer : D. Out of free reserves built out of genuine profit
Description : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Description : Following is the Source of fund A. Decrease in balance of Debenture B. Decrease in Long term Liability C. Increase in Long term loan D. Redemption of Shares
Last Answer : C. Increase in Long term loan
Description : Working capital will increase A. If Current Asset Decrease B. If Current Liability Decrease C. If Current LiabilityIncrease D. If new shares are issued
Last Answer : B. If Current Liability Decrease
Description : To issue shares on Discount mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer
Last Answer : C. Issue on less than face value of shares
Description : To issue shares on Par mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer
Last Answer : A. Issue on face value of shares
Description : To issue shares on premium mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer
Last Answer : B. Issue on more than face value of shares
Description : Cancelation of shares mean A. Reissue of shares B. Valuation of shares C. Forfeiture of shares D. Allotment of shares
Last Answer : C. Forfeiture of shares
Description : The shares received from the new company is recorded at (A) Face value (B) Market value (C) Average price (D) None of these
Last Answer : (B) Market value
Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A)Cash (B)Debenture (C)Pref. share (D)Assets
Last Answer : (A)Cash
Description : Which of the following statement is correct? (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only (B)The amount of Goodwill or ... face value of shares of purchasing company will be taken in to account while calculating purchase consideration.
Last Answer : (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only
Description : Shares received from the new company are recorded at - (A)Face value (B)Average price (C)Market value (D)None of the above
Last Answer : (C)Market value
Description : fter getting minimum subscription of shares, the company has to allot shares with in--------- ------days. A. 90 B. 100 C. 110 D. 120
Last Answer : D. 120
Description : When shares issued at premium which of the following account is credited? A. Share premium account B. Share first call account C. Share allotment account D. Share forfeited account
Last Answer : A. Share premium account
Description : Premium received on issue of shares is shown on-----------. A. asset side of the balance sheet B. liability side of the balance sheet C. credit side of the P&L a/c. D. debit side of the P & L a/c
Last Answer : B. liability side of the balance sheet
Description : The minimum share Application money is -----------. A. 5% of the face value of shares B. 10% of the issue price of shares C. Re. 1 per share D. 15% of the face value of shares
Last Answer : A. 5% of the face value of shares
Description : Which of the following stresses on investor’s preference for current dividend than higher future capital gains? A. Walter’s Model B. Residual’s Theory C. Gordon’s Model D. MM
Last Answer : C. Gordon’s Model
Description : Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital
Last Answer : d) Added to Preference Share Capital
Description : Randeep invests Rs. 25,200 in buying shares of face value of Rs. 40 each at 5% premium. The dividend on these shares is 10% per annum. Find the divide
Last Answer : Randeep invests Rs. 25,200 in buying shares of face value of Rs. 40 each at 5% premium. The dividend on these ... B. Rs. 2400 C. Rs. 4200 D. Rs. 3680
Description : Kavya bought 300, Rs. 50 shares paying a dividend of 8%. If she sold them when the price rose to Rs. 90 and invested the proceeds in 10%, Rs. 50 share
Last Answer : Kavya bought 300, Rs. 50 shares paying a dividend of 8%. If she sold them when the price rose to ... . 30, then find the change in her annual income.
Description : Rahul invested a certain amount in buying Rs. 25 shares of a company, which pays a dividend of 12%. If the earns 10% per annum on his investment, then
Last Answer : Rahul invested a certain amount in buying Rs. 25 shares of a company, which pays a dividend of ... , then find the market value of each share.
Description : Naresh invested a certain amount of money in Rs. 100 shares at a discount of Rs. 20 paying a dividend of 7%, while Sahil invested an equal amount in R
Last Answer : Naresh invested a certain amount of money in Rs. 100 shares at a discount of Rs. 20 paying a dividend ... 10 paying a dividend of 8%. Who earns more ?
Description : Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ?
Last Answer : Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ?
Description : A person invested Rs. 18,000 in buying Rs. 150 shares of a company which are available at a premium of Rs. 50. If the company pays a 9% dividend, then
Last Answer : A person invested Rs. 18,000 in buying Rs. 150 shares of a company which are available at a ... also the annual income he earned from the investment.
Description : If an investment of Rs. 42,000 in Rs. 300 shares of a company, paying a dividend of 7%, results in an annual income of Rs. 2100, then find the market
Last Answer : If an investment of Rs. 42,000 in Rs. 300 shares of a company, paying a dividend of 7%, results ... . 2100, then find the market value of each share.
Description : A man invests Rs. 20,000 in Rs. 80 shares of a company available at a premium of Rs. 20. IF the company pays a dividend of 8%, then find the rate of r
Last Answer : A man invests Rs. 20,000 in Rs. 80 shares of a company available at a premium of Rs. 20. IF ... of 8%, then find the rate of return on the investment.