Test on company 1

Interest payable on debenture is a .................. against statement of profit and loss
Appropriation
Charge
Both charge and appopriation

A zero coupon debenture is without...................
Prespecified rate of dividend
Prespecified rate of interest

Premium on redemption of debenture is  ...............
A revenue loss
A capital loss
Do not know

Match the following
Capital loss
Issued against mortgage of any assets
Debt instruments
Appropriation of profits
A charge
Owner instruments
Capital profit
Debentures
Shares
Dividend
Debentures interest
Securities premium reserve
Discount on issue of debentures
Secured debentures

Put the following entries in correct order
Bank ac...............dr equity share allotment ac
Bank ac... .. dr to equity share application ac
Equity share application ac........dr to share capital ac
Equity share allotment ac......dr to share capital ac

Debentures cannot be issued but shares can be
True
False
Do not know

Securities premium can be used for
Issuing fully paid bonus shares
For buying back equity shares
For writing off discount on issue of debentues
For writing off premium on redemption of debentures
For all the purposes given

A company can be formed without incorporation or registration
True
False
Do not know

When the issue of a company is oversubscribed, it can
Reject the excess applications
allot to all on prorate basis
Reject some application,allot to some on prorate basis and allot in full to some applicants

If you have bought 100 shares of XYZ CO at Rs 20 per share which includes premium of Rs 5 per share, what is maximum liability?
RS 2000
Rs 1500
RS 1000

Originally shares cannot be issued at discount but once they are forfeited they can be issued at discount or loss
False
True
Do not know

A limited company can be formed with at least two members
True
False
Do not know

A private limited company can invite public to subscribe its shares
True
False
Do not know

Match the following
Partnership firm
One person company
Partnership firm
Comapny
Limited company
It is the business entity which can have any number of members
It is the business entity which can have at the most 50 partners
It a company which has only one member
It is the business where members have unlimited liability
It is the business where liability is limited up to numbers held by a member

A company which is registered as private limited company can have at the most .......... members
100
200
300

A comapny is a legal person whereas a partnership firm is double legal firm.
True
False
Do not know