Teaching Accountancy Company Accounts Question Bank

done MCQ - Company Accounts Total Questions - 99

• question_answer1)
  Equity shareholders are         
  A)
   Customers of company done clear
  B)
   Owners of company done clear
  C)
   Creditors of company             done clear
  D)
   Debtors of company    done clear
  View Solution play_arrow

• question_answer2)
          Which one of the following in not a characteristic of a company?
  A)
   Voluntary association done clear
  B)
   Perpetual existence                done clear
  C)
   Unlimited liability                    done clear
  D)
   Common seal                  done clear
  View Solution play_arrow

• question_answer3)
  Reduction of share capital requires the permission of       
  A)
   Central government                    done clear
  B)
   court                          done clear
  C)
   SEBI                                        done clear
  D)
   company registrar done clear
  View Solution play_arrow

• question_answer4)
  In case of liquidation of a company any amount payable under employees provident fund will be
  A)
   Secured creditor                         done clear
  B)
   Unsecured creditor                done clear
  C)
   Preferential creditor                    done clear
  D)
   Partly secured creditor     done clear
  View Solution play_arrow

• question_answer5)
          'Non-convertible' debentures refer to
  A)
   Owner's capital                          done clear
  B)
   loan capital                       done clear
  C)
   Short-term debts                        done clear
  D)
   All of the above             done clear
  View Solution play_arrow

• question_answer6)
  'Proposed dividend' is shown in the balance sheet of a company under the head                
  A)
   Provisions                                 done clear
  B)
   current liabilities                      done clear
  C)
   Reserves and surplus                   done clear
  D)
   other liabilities                        done clear
  View Solution play_arrow

• question_answer7)
  That portion of the share capital which cannot be called-up except on the winding up is known as    
  A)
   called-up capital                        done clear
  B)
   paid-up capital                    done clear
  C)
   Authorised capital                      done clear
  D)
   reserve capital done clear
  View Solution play_arrow

• question_answer8)
                  Interim dividend is shown       
  A)
   In profit and loss account          done clear
  B)
   In profit and loss appropriation account done clear
  C)
   On the asset side of balance sheet done clear
  D)
   On the liability side of balance sheet done clear
  View Solution play_arrow

• question_answer9)
  Balance in share forfeiture account is shown in the balance sheet under the head
  A)
   Current liabilities and provisions done clear
  B)
   Reserves and surplus done clear
  C)
   Share capital account done clear
  D)
   Unsecured loans done clear
  View Solution play_arrow

• question_answer10)
  Debentures are shown in the balance sheet of a company under the head
  A)
   Secured loans                            done clear
  B)
   current liabilities done clear
  C)
   Unsecured loans                         done clear
  D)
   current assets done clear
  View Solution play_arrow

• question_answer11)
  When shares are forfeited, the share capital account is debited with the
  A)
   Nominal value of shares done clear
  B)
   Paid-up value of shares done clear
  C)
   called-up value of shares done clear
  D)
   Maximum value of shares done clear
  View Solution play_arrow

• question_answer12)
  Balance of share forfeited account is a
  A)
   Capital reserve                           done clear
  B)
   ratio reserve done clear
  C)
   Revenue reserve                         done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer13)
  Interest paid on debentures is shown in
  A)
   The profit and loss account done clear
  B)
   The profit and loss appropriation account done clear
  C)
   The liability side of the balance sheet under the head 'Current Liabilities' done clear
  D)
   The balance sheet by adding to the debentures account done clear
  View Solution play_arrow

• question_answer14)
  Share premium account is shown
  A)
   On the asset side under the heading 'Current Assets' done clear
  B)
   On the liability side under the heading 'Current Liabilities and Provisions' done clear
  C)
   On the liability side under the heading 'Share Capital' done clear
  D)
   On the liability side under the heading 'Reserves and Surplus' done clear
  View Solution play_arrow

• question_answer15)
  The risk involved in equity share is......
  A)
   Maximum                                 done clear
  B)
   minimum done clear
  C)
   Normal                                     done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer16)
  Promoter of a company is
  A)
   A trustee done clear
  B)
   An agent done clear
  C)
   Trustee and agent both done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer17)
  Which one of the following is not a part of the Memorandum of Association?
  A)
   Name Clause                             done clear
  B)
   Object Clause done clear
  C)
   Capital Clause                           done clear
  D)
   Rules and Bylaws done clear
  View Solution play_arrow

• question_answer18)
  This document is not required to be submitted to the registrar at the time of registration of the company
  A)
   Memorandum of Association done clear
  B)
   Association of Articles done clear
  C)
   Prospectus done clear
  D)
   Statutory Declaration done clear
  View Solution play_arrow

• question_answer19)
  Secret Reserve will be shown in
  A)
   Profit and Loss Account done clear
  B)
   Profit and Loss Appropriation Account done clear
  C)
   Balance Sheet done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer20)
  The minimum number of members in a public company must be
  A)
   2                                             done clear
  B)
   5 done clear
  C)
   7                                             done clear
  D)
   50 done clear
  View Solution play_arrow

• question_answer21)
  Preference shareholders have normally
  A)
   Equal voting rights done clear
  B)
   No voting rights done clear
  C)
   limited voting rights done clear
  D)
   Full voting rights done clear
  View Solution play_arrow

• question_answer22)
  In company risk is born by
  A)
   Directors done clear
  B)
   Shareholders done clear
  C)
   Creditors of company done clear
  D)
   Managing director done clear
  View Solution play_arrow

• question_answer23)
  Share forfeited account is shown on the liability side of the balance sheet
  A)
   Under the heading ‘Reserves and Surplus’ done clear
  B)
   By adding to the paid-up capital done clear
  C)
   Under the heading ‘Current Liabilities and Provisions’ done clear
  D)
   Under the heading ‘Miscellaneous Expenses’ done clear
  View Solution play_arrow

• question_answer24)
  The balance sheet of a company
  A)
   Must be prepared in the form set out by law done clear
  B)
   May be prepared in any form done clear
  C)
   Should be prepared in any form so as to give a true and fair picture of the state of affairs of the company done clear
  D)
   Atleast be prepared in the form set by law done clear
  View Solution play_arrow

• question_answer25)
  The income statement of limited company is known as
  A)
   Manufacturing account done clear
  B)
   Trading and profit and loss account done clear
  C)
   Statement of profit and loss done clear
  D)
   Profit and loss appropriation account done clear
  View Solution play_arrow

• question_answer26)
  Bonus shares can be issued out of
  A)
   Profit and loss account done clear
  B)
   Capital reserve done clear
  C)
   Share premium account done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer27)
  When shares are forfeited, capital account is debited by
  A)
   Nominal value of shares done clear
  B)
   Paid-up amount on shares done clear
  C)
   called-up amount on shares done clear
  D)
   Forfeited amount done clear
  View Solution play_arrow

• question_answer28)
  The balance of the share forfeiture account, after the re-issue of forfeited shares, is transferred to
  A)
   Capital redemption reserve account done clear
  B)
   Capital reserve done clear
  C)
   General reserve done clear
  D)
   Profit and loss account done clear
  View Solution play_arrow

• question_answer29)
  Premium on redemption of debentures account is
  A)
   Personal account                       done clear
  B)
   real account done clear
  C)
   Nominal account                       done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer30)
  Interest payable on debentures is
  A)
   An appropriation of profits of the company done clear
  B)
   A charge against profits of the company done clear
  C)
   Transferred to sinking fund account done clear
  D)
   Transferred to sinking fund interest account done clear
  View Solution play_arrow

• question_answer31)
  Memorandum of Association is also known as
  A)
   Document of the company done clear
  B)
   Agreement of the company done clear
  C)
   Contract of the company done clear
  D)
   Charter of the company done clear
  View Solution play_arrow

• question_answer32)
  A joint stock company has a
  A)
   Distinct legal entity done clear
  B)
   Perpetual succession done clear
  C)
   Common seal as a substitute of its signature done clear
  D)
   All of the above      done clear
  View Solution play_arrow

• question_answer33)
    Share premium received by a company can be used for
  A)
   The issue of bonus shares done clear
  B)
   Payment of dividends done clear
  C)
   Remuneration of management done clear
  D)
   Any business purpose done clear
  View Solution play_arrow

• question_answer34)
  Debentures can be redeemed by
  A)
   Purchase of own debentures in the open market done clear
  B)
   Converting them into shares done clear
  C)
   Converting them into new class of debentures done clear
  D)
   Any of the above done clear
  View Solution play_arrow

• question_answer35)
  Capital redemption reserve account is available for
  A)
   Redemption of redeemable preference shares done clear
  B)
   Redemption of redeemable debentures done clear
  C)
   Re-organisation of share capital done clear
  D)
   Issue of bonus shares done clear
  View Solution play_arrow

• question_answer36)
  Any balance in the share forfeiture account, after all the forfeited shares are reissued, should be
  A)
   Added to the paid-up capital done clear
  B)
   Transferred to the goodwill account done clear
  C)
   Transferred to the capital reserve account      done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer37)
  When a company issues shares at a premium, the amount of premium may be received by the company
  A)
   Along with application money done clear
  B)
   Along with allotment money done clear
  C)
   Along with calls done clear
  D)
   All of the above    done clear
  View Solution play_arrow

• question_answer38)
  For which of the following purposes, share premium can be used?
  A)
   In writing off the discount on debentures of the company done clear
  B)
   In writing off the preliminary expenses of the company done clear
  C)
   In providing for the premium payable on the redemption of preference shares, done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer39)
  Issued capital is
  A)
   That part of authorised capital which is issued by the company done clear
  B)
   That amount of capital which is subscribed by the shareholders done clear
  C)
   That capital which is authorised by the company done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer40)
  Right shares means the shares which are
  A)
   Issued to the directors of the company done clear
  B)
   first offered to the debenture holders done clear
  C)
   first offered to the existing shareholders done clear
  D)
   issued by a newly formed company done clear
  View Solution play_arrow

• question_answer41)
  A joint stock company is
  A)
   an artificial institution done clear
  B)
   a natural person done clear
  C)
   an artificial legal person done clear
  D)
   trust done clear
  View Solution play_arrow

• question_answer42)
  In a private company, the minimum number of members must be
  A)
   1                                             done clear
  B)
   2   done clear
  C)
   5                                             done clear
  D)
   10 done clear
  View Solution play_arrow

• question_answer43)
  The maximum number of members of a private company limits to
  A)
   10                                            done clear
  B)
   200 done clear
  C)
   30                                            done clear
  D)
   70 done clear
  View Solution play_arrow

• question_answer44)
  Capital reserve is created out of
  A)
   Uncalled capital                         done clear
  B)
   paid-up capital done clear
  C)
   Reserve capital                          done clear
  D)
   capital profits done clear
  View Solution play_arrow

• question_answer45)
  Capital reserve is disclosed on the liability side of balance sheet under the head
  A)
   Provisions                                 done clear
  B)
   reserves and surplus done clear
  C)
   Share capital                             done clear
  D)
   current liabilities done clear
  View Solution play_arrow

• question_answer46)
  A company can buy back its
  A)
   Preference shares                       done clear
  B)
   securities done clear
  C)
   Debentures                                done clear
  D)
   equity shares done clear
  View Solution play_arrow

• question_answer47)
  Company will have to pay interest @ .......... on calls-in-advance.
  A)
   7%                                           done clear
  B)
   8% done clear
  C)
   10%                                         done clear
  D)
   12% done clear
  View Solution play_arrow

• question_answer48)
  For how many days, the company must give a notice to the defaulting share holder before forfeiting his shares?
  A)
   18 days                                    done clear
  B)
   14 days done clear
  C)
   1 month                                   done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer49)
  Which type of debentures are transferable by mere delivery?
  A)
   Redeemable debentures done clear
  B)
   Bearer debentures done clear
  C)
   Convertible debentures done clear
  D)
   Secured debentures done clear
  View Solution play_arrow

• question_answer50)
  Premium received on debentures is credited to
  A)
   Premium on debentures account done clear
  B)
   Loss on debentures account done clear
  C)
   Securities premium account done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer51)
  Purchase consideration can be calculated as
  A)
   Value of Asset - Liabilities Assumed done clear
  B)
   Value of Asset + Liabilities Assumed done clear
  C)
   Liabilities Assumed - Value of Asset done clear
  D)
   Liabilities Assumed + Current Assets done clear
  View Solution play_arrow

• question_answer52)
  Security provided to the lender over and above the prime or principal security is called
  A)
   Collateral security done clear
  B)
   Convertible security done clear
  C)
   Specific security done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer53)
  Loss on issue of debenture account is a
  A)
   Real account                             done clear
  B)
   nominal account done clear
  C)
   Personal account                       done clear
  D)
   bank account   done clear
  View Solution play_arrow

• question_answer54)
  Discount on the issue of debentures  is a                                       
  A)
   Real asset                                 done clear
  B)
   current asset                      done clear
  C)
   fixed asset                                 done clear
  D)
   fictitious asset done clear
  View Solution play_arrow

• question_answer55)
  Which one of the following is the registered capital of the company?
  A)
   Paid-up capital                          done clear
  B)
   Authorised capital done clear
  C)
   Uncalled capital                         done clear
  D)
   Reserve capital done clear
  View Solution play_arrow

• question_answer56)
  Discount on the issue of debentures is shown on the
  A)
   Liabilities side of the balance sheet done clear
  B)
   Asset side of the balance sheet done clear
  C)
   Profit and loss account done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer57)
  Debenture interest is a
  A)
   Charge on profit                         done clear
  B)
   Appropriation of profit done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer58)
  In case of liquidation of a company, which of the following is repayable in the last?
  A)
   Equity capital                            done clear
  B)
   Preference capital                done clear
  C)
   Debenture capital                       done clear
  D)
   Public deposits done clear
  View Solution play_arrow

• question_answer59)
  When a company is wound-up, first preference in respect to repayment is made to
  A)
   Equity shareholders                    done clear
  B)
   Preference shareholders done clear
  C)
   Debenture holders done clear
  D)
   Unsecured creditors done clear
  View Solution play_arrow

• question_answer60)
  Bonus shares means shares which are
  A)
   Issued to the directors free of cost done clear
  B)
   Issued to the existing shareholders at less than the market price done clear
  C)
   Issued to the existing shareholders free of cost done clear
  D)
   Issued by a newly formed company                done clear
  View Solution play_arrow

• question_answer61)
    Which of the following sources don't put a burden on the finance of the company?
  A)
   Debentures done clear
  B)
   Ploughing back of profits done clear
  C)
   Public deposits done clear
  D)
   Bank loans                     done clear
  View Solution play_arrow

• question_answer62)
  In which of the following securities, investment is most risky?
  A)
   Equity shares                             done clear
  B)
   Preference shares done clear
  C)
   Debentures                                done clear
  D)
   All of the above      done clear
  View Solution play_arrow

• question_answer63)
           On which of the following, a company has to pay interest even, if it incurrs losses?
  A)
   Debentures done clear
  B)
   Loan from financial institution done clear
  C)
   Bank loans done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer64)
  A joint stock company comes to an end by the
  A)
   Death of its members done clear
  B)
   Death of its directors done clear
  C)
   Transfer of shares by its members done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer65)
  When is dividend on preference share capital payable?
  A)
   Even in the case of no profit done clear
  B)
   On the recommendation of directors done clear
  C)
   In the case of profit only done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer66)
  Which of the following statements is incorrect?
  A)
   Preference shares can be redeemed only after they are fully paid done clear
  B)
   Redeemable preference shares can be redeemed by conversion into new shares done clear
  C)
   Profit on cancellation of debentures is to be transferred to general reserve done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer67)
  A new company cannot issue shares
  A)
   at discount                                done clear
  B)
   at premium done clear
  C)
   Both (a) and (b) done clear
  D)
   at par done clear
  View Solution play_arrow

• question_answer68)
  A fresh issue by a company can first be offered to
  A)
   The public done clear
  B)
   The financial institutions done clear
  C)
   The existing shareholders done clear
  D)
   The debenture holders done clear
  View Solution play_arrow

• question_answer69)
  Minimum subscription must be collected within
  A)
   60 days                                    done clear
  B)
   45 days done clear
  C)
   120 days                                  done clear
  D)
   130 days done clear
  View Solution play_arrow

• question_answer70)
  An amount of minimum subscription can be known by
  A)
   memorandum of association done clear
  B)
   Articles of association done clear
  C)
   Prospectus done clear
  D)
   Statement in lieu of prospectus done clear
  View Solution play_arrow

• question_answer71)
  The money which can be called on the winding-up of a company is called
  A)
   Capital reserve                           done clear
  B)
   authorised capital done clear
  C)
   called-up capital                        done clear
  D)
   reserve capital done clear
  View Solution play_arrow

• question_answer72)
  It is not mandatory to create
  A)
   capital reserve                           done clear
  B)
   reserve capital done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer73)
  A debenture of ` 100 is issued for ` 105. The premium of ` 5 will be credited in
  A)
   Debentures account done clear
  B)
   Debentures premium account done clear
  C)
   Securities account done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer74)
  When debentures are issued as collateral security, debentures suspense account is
  A)
   Debited                                     done clear
  B)
   credited done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer75)
  Discount on issue of debentures is a
  A)
   Capital profit                             done clear
  B)
   capital loss        done clear
  C)
   Revenue loss                             done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer76)
  No interest is payable on
  A)
   Debentures done clear
  B)
   Redeemable debentures done clear
  C)
   Convertible debentures done clear
  D)
   Debentures issued as collateral security done clear
  View Solution play_arrow

• question_answer77)
  Which of the following statements is incorrect?
  A)
   When proposed dividend does not exceed 10%. It is not obligatory on the company to transfer any profit to its reserve done clear
  B)
   Capital redemption reserve can be utilised for writing off miscellaneous expenses and losses done clear
  C)
   Dividends is not payable on the calls paid in advance by shareholders done clear
  D)
   Reserves created by revaluation of fixed assets are not permitted to be capitalised     done clear
  View Solution play_arrow

• question_answer78)
              Match the following

  List I		List II
  A.	If the forfeited shares are reissued at discount the discount amount is debited to the......	1.	Share premium
  B.	.....can be used to write off preliminary expense	2.	Share forfeiture account
  C.	Premium received on Issue of debenture is a ..	3.	20 years
  D.	Preference shared redeemable within .. can be issued	4.	Capital gain

  Codes
  A)
           A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3    done clear
  B)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  C)
   A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done clear
  D)
   A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer79)
  Match the following

  List I		List II
  A.	The formula for calculating the profit on reissue is	1.	Aricle of Association
  B.	Right shares must be first offered to existing.......	2.	Security premium
  C.	Premium received on issue of debenture is credited to......	3.	Amount forfeited less discount on reissue
  D.	Redeemable preference shares can be issued only when it is authorised by its ..	4.	Equity shareholders

  Codes
  A)
           A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2    done clear
  B)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  C)
   A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 done clear
  D)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer80)
  Match the following

  List I		List II
  A.	Deferred shares	1.	Repayment obligation
  B.	Preference shares	2.	Resembles stock dividend
  C.	Bonus shares	3.	No dividend obligation
  D.	Equity shares	4.	Not being used

  Codes
  A)
           A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2    done clear
  B)
   A\[\to \]4, B\[\to \]1, C\[\to \]3, D\[\to \]2 done clear
  C)
   A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 done clear
  D)
   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done clear
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• question_answer81)
  The balance in share forfeiture account, after the reissue of all forfeited shares, should be
  A)
   Transferred to goodwill A/c done clear
  B)
   Transferred to capital reserve A/c done clear
  C)
   Shown as Share forfeiture A/c      done clear
  D)
   Added to paid-up capital done clear
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• question_answer82)
  Match the following  

  List I		List II
  A.	Partly paid preference share	1.	Premium on redemption of preference shares
  B.	Capital redemption reserve	2.	Current liabilities
  C.	Security premium	3.	Redemption out of free reserve
  D.	Unclaimed dividend	4.	Can not be redeem

  Codes
  A)
           A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1    done clear
  B)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  C)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  D)
   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done clear
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• question_answer83)
  Match the following

  List I		List II
  A.	After reissue of forfeited shares the balance of share forfeiture account is	1.	Assets
  B.	Bonus issue is made	2.	Free reserve
  C.	Debentures secured by a charge on secured debentures	3.	Accumulated profits
  D.	Workmen's compensation fund is ..to extent there is no compensation payable.	4.	Capital , Reserve A/c

  Codes
  A)
           A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1    done clear
  B)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  C)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  D)
   A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done clear
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• question_answer84)
  Match the following    

  List I		List II
  A.	Authorised share capital is mentioned in the ......... of the company	1.	Irredeemable
  B.	No dividend is paid on ..	2.	Memorandum of Association
  C.	Only .........preference shares can be redeemed.	3.	Calls-in-advance
  D.	No company can issue .. preference shares.	4.	Fully paid

  Codes
  A)
                                   A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1    done clear
  B)
   A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 done clear
  C)
   A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done clear
  D)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3    done clear
  View Solution play_arrow

• question_answer85)
           Which of the following statement is False             
  A)
   The preference shareholders are legally entitled to the repayment of capital in the event of liquidation of the company done clear
  B)
   A company being a creation of law cannot die a natural death. It comes to an end by law through the process of liquidation done clear
  C)
   If a company makes a default in delivering the statutory report to the registrar or in holding the statutory meeting, then company is compulsorily wound up by the court done clear
  D)
   Creditors voluntary winding up applies to insolvent companies done clear
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• question_answer86)
  Voluntary winding up
  A)
   If period fixed for the company is expired done clear
  B)
   If company passes a special resolution the company would wound-up voluntarily. done clear
  C)
   Members voluntary winding wound-up is applicable to solvent companies only done clear
  D)
   All of the above done clear
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• question_answer87)
  Compulsory winding up
  A)
   If a company unable to pay its debt done clear
  B)
   If the number of members of company reduced below statutory limit done clear
  C)
   If a company does commence its business within a year from its incorporation done clear
  D)
   All of the above done clear
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• question_answer88)
  Liquidator is appointed by

  List I		List II
  A.	Court	1.	Members voluntarily winding-up
  B.	Members	2.	In case of creditors voluntarily winding-up
  C.	Creditors and Members	3.	In case of compulsory winding-up

  Codes
  A)
                                   A\[\to \]3, B\[\to \]1, C\[\to \]2 done clear
  B)
   A\[\to \]1, B\[\to \]2, C\[\to \]3 done clear
  C)
   A\[\to \]2, B\[\to \]1, C\[\to \]3 done clear
  D)
   A\[\to \]1, B\[\to \]3, C\[\to \]2 done clear
  View Solution play_arrow

• question_answer89)
                                                  The first item in order of payment to be made liquidator is
  A)
   Secured creditors done clear
  B)
   Preferential creditors done clear
  C)
   Liquidation expenses done clear
  D)
   Unsecured creditors done clear
  View Solution play_arrow

• question_answer90)
  Liquidators statement of receipts and payment is known as
  A)
   cash flow statement done clear
  B)
   Cash book done clear
  C)
   Liquidator’s final statement of account done clear
  D)
   Deficiency account done clear
  View Solution play_arrow

• question_answer91)
  A contributory is
  A)
   A creditor done clear
  B)
   A shareholder done clear
  C)
   A debenture holder done clear
  D)
   A convertible debenture holder done clear
  View Solution play_arrow

• question_answer92)
  A past member is not liable to contribute
  A)
   In respect of any liability contracted after he ceased to be member of the company done clear
  B)
   One year passed since he ceased to be member done clear
  C)
   In case of company limited by shares, no liability arises if shares are fully paid up done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer93)

  Correct order of payment.

  I. Unsecured creditors

  II. Any surplus, among the contributories

  III. Liquidation expenses

  IV. Preferential creditors

  V. Secured creditors

  Codes
  A)
                                   1, 2, 3, 4, 5 done clear
  B)
   4, 3, 2, 1, 5 done clear
  C)
   3, 5, 4, 1, 2 done clear
  D)
   5, 3, 2, 1, 4 done clear
  View Solution play_arrow

• question_answer94)
  Which of the following statement is true?
  A)
   Preference share capital together with any arrears of dividend will have priority for payment on equity capital done clear
  B)
   The holders of cumulative preference shares are entitled to arrears of dividend if there is a surplus after return of equity capital done clear
  C)
   Preference shares are treated as fully secured creditors done clear
  D)
   If articles provides for payment of arrear of dividend, then it must be paid even by contributories if shares are partly paid done clear
  View Solution play_arrow

• question_answer95)
  Which of the following is not a preferential creditors?
  A)
   All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintained for welfare of employee done clear
  B)
   Compensation under workmen’s compensation act done clear
  C)
   Amount due under employees state insurance act for 12 months previous to the winding up done clear
  D)
   Amount due to employee under amalgamation or reconstruction. done clear
  View Solution play_arrow

• question_answer96)
  'B' List of contributories are not liable,
  A)
   If shares are fully paid up done clear
  B)
   For liabilities after they are ceased to be member of the company done clear
  C)
   If present shareholders paid the unpaid amount of the shares transferred by them done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer97)
  Which one of the following is False?
  A)
   Amount due to workman is rank with secured creditors in the event of liquidation of company done clear
  B)
   Salaries due to director, manage, secretary etc., are preferential       done clear
  C)
   All revenue taxes due to government within 12 months before the date of commencement of winding up is preferential done clear
  D)
   Calls in advance on shares have priority over payment of paid up share capital of that class done clear
  View Solution play_arrow

• question_answer98)
  Which one of the following is False?
  A)
   Preference shareholders are legally entitled to the repayment of capital in the event of liquidation of the company done clear
  B)
   The liquidator has a legal right of forfeiting the shares of those who   fail to pay the amount due         done clear
  C)
   The holder of fully paid shares are also treated as contributories even though they are not to contribute to the assets of the company done clear
  D)
   Liquidator of the company is responsible for realisation of assets and distribute the proceeds amongst the right claimants     done clear
  View Solution play_arrow

• question_answer99)
    Which one of the following is False?
  A)
   Past members are included in 'A' list of contributories. done clear
  B)
   Present members are included in 'A' list of contributories. done clear
  C)
   If a company makes a default in delivering the statutory report to the registrar or in holding the statutory meeting,   then   company is compulsorily wound up by the court. done clear
  D)
   Creditors voluntary winding up applies to insolvent companies. done clear
  View Solution play_arrow