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

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
by

1 Answer

Answer :

B. writing of
by

Related questions

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

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

Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset

Description : Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset

Last Answer : Answer: Meeting the cost of issue of shares or debentures

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

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

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

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

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

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

Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital

Description : Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital

Last Answer : A. Cash Dividend

Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these

Description : Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these

Last Answer : Answer: Issue of Bonus shares

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 Capital Reserve is found out in the books of vendor company only. (C)Goodwill = Net Assets –Purchase price (D)The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

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

The amount deposited in Securities Premium Account can be used for– (A) Distributing profits (B) Issue of Bonus Shares (C) Paying the amount to director (D) None of the above

Description : The amount deposited in Securities Premium Account can be used for– (A) Distributing profits (B) Issue of Bonus Shares (C) Paying the amount to director (D) None of the above

Last Answer : Answer: Issue of Bonus Shares

Dividend can be paid generally out of– (A) share premium account (B) capital redemption reserve account (C) current year’s profits (D) All of these

Description : Dividend can be paid generally out of– (A) share premium account (B) capital redemption reserve account (C) current year’s profits (D) All of these

Last Answer : Answer: current year’s profits

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

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

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Description : Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Last Answer : 2

Liabilities (not accumulated profits) of a company include— A. General reserve B. Pension fund C. Dividend equalisation fund. D. Retain earning

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

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 the Cash flow C. The flow of funds must arise due to external and not internal transactions of the business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

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

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

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

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

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

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

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

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

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.

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

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.

An investment in buying 400 shares of a company at a premium of Rs.2.50 earns an income of `9.6%` per annum. If the rate of dividend paid by the compa

Description : An investment in buying 400 shares of a company at a premium of Rs.2.50 earns an income of `9.6%` per annum. If the rate of dividend paid by the compa

Last Answer : An investment in buying 400 shares of a company at a premium of Rs.2.50 earns an income of `9.6%` ... `12%`, then find the face value of each share.

A Rs.100 shares is bought at a premium of Rs.25. If the investment is worth `9%` per annum, then find the rate at which the company pays the dividend.

Description : A Rs.100 shares is bought at a premium of Rs.25. If the investment is worth `9%` per annum, then find the rate at which the company pays the dividend.

Last Answer : A Rs.100 shares is bought at a premium of Rs.25. If the investment is worth `9%` per annum, then find the rate at which the company pays the dividend.

The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

Description : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

Last Answer : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

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

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

Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid

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

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

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

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

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

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

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

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

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.

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

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 ?

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 : 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% ?

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

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.

Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.

Description : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.

Last Answer : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.

Mukesh invests Rs.12,000 in a company to but Rs.100 shares, paying `10%` dividend. His income from the shares is _______.

Description : Mukesh invests Rs.12,000 in a company to but Rs.100 shares, paying `10%` dividend. His income from the shares is _______.

Last Answer : Mukesh invests Rs.12,000 in a company to but Rs.100 shares, paying `10%` dividend. His income from the shares is _______.

What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Last Answer : Answer: Issue of fully paid bonus shares

Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

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

Working capital will increase A. If Current Asset Decrease B. If Current Liability Decrease C. If Current LiabilityIncrease D. If new shares are issued

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

Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : C. Goodwill or capital reserve

Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : A. General reserve

The profit on the reissue of forfeited share are transferred to A. Capital A/ c B. Capital Reserve C. Profit & Loss A/c D. General Issues

Description : The profit on the reissue of forfeited share are transferred to A. Capital A/ c B. Capital Reserve C. Profit & Loss A/c D. General Issues

Last Answer : B. Capital Reserve

Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Last Answer : D] Expenses should be matched with the revenue of the period.

When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Last Answer : (C) Realisation A/c

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

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

Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Description : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Last Answer : (A) Goodwill Rs. 8,777

Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Last Answer : (C) Purchase consideration

When attempting to build a risk premium into the required returns of stocks in a developing country, an analyst should use the ________. a) country spread model b) country's weighted average cost of capital c) modified Gordon growth model d) dividend discount model

Description : When attempting to build a risk premium into the required returns of stocks in a developing country, an analyst should use the ________. a) country spread model b) country's weighted average cost of capital c) modified Gordon growth model d) dividend discount model

Last Answer : a) country spread model

When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called– (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue

Description : When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called– (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue

Last Answer : Answer: Right shares issue

X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many shares should X Ltd. issue to Maruti Udyog Ltd. for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Description : X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many ... . for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Last Answer : Answer: 28,000 shares

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

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

Which is not the form of dividend? A. Regular B. Stock C. Property D. Zero Dividend

Description : Which is not the form of dividend? A. Regular B. Stock C. Property D. Zero Dividend

Last Answer : D. Zero Dividend