Class 12 Accountancy MCQs Share Capital
Here are a large number of MCQs for practice to prepare for final exams. Note the time taken and the accuracy of your work to score high in final exam.
- Preference shareholders have:
a) Preferential right as to dividend only
b) Preferential right in the management
c) Preferential right as to repayment of capital at the time of liquidation of the company
d) Preferential right as to dividend and repayment of capital at the time of liquidation of the Company
2. Capital included in the Total of Balance Sheet of a Company is called:
a) Issued Capital
b) Subscribed Capital
c) Called up Capital
d) Authorised Capital
3. Which of the following statements is true:
a) Authorised Capital = Issued Capital
b) Authorised Capital > Issued Capital
c) Paid up Capital > Issued Capital
d) None of the above
4. A company cannot issue:
a) Redeemable Equity Shares
b) Redeemable Preference Shares
c) Redeemable Debentures
d) Fully Convertible Debentures
5. Shares issued by a company to its employees or directors in consideration of ‘Intellectual Property Rights’ are called:
a) Right Equity Shares
b) Private Equity Shares
c) Sweat Equity Shares
d) Bonus Equity Shares
6. Minimum subscription amount of 90% is related to which share capital:
a) Authorised Capital
b) Issued Capital
c) Paid up Capital
d) Reserve Capital
7. Share Application Account is in the nature of:
a) Real Account
b) Personal Account
c) Nominal Account
d) None of the above
8. As per SEBI Guidelines, Application money should not be less than ……………. of the issue price of each share:
a) 10%
b) 15%
c) 25%
d) 50%
9. 2,000 Equity Shares of ₹10 each were issued at 5% premium to the promoters of a company for their services. Which account will be debited:
a) Share Capital Account
b) Goodwill Account/Incorporation Cost Account
c) Securities Premium Reserve Account
d) Cash Account
10. Assertion - Under Section 62(1)(b) of the Companies Act, 2013, a Company may offer shares to its employees under a scheme of ‘Employees Stock Option’ which means the option (right) given to the whole-time directors, officers or permanent employees of a company to purchase or subscribe the securities offered by the company at a future date, at a pre-determined price, which is lower than the market price.
Reason - The company need not to pass a special resolution to this effect.
Alternatives:
a) Assertion is incorrect, but Reason is Correct
b) Assertion is correct, but Reason is incorrect
c) Both Assertion and Reason are Correct and Reason is the correct explanation of Assertion
d) Both Assertion and Reason are Correct, but Reason is not the correct explanation of Assertion