Accounting for Share Capital MCQ Questions Class 12 Accountancy Part II Chapter 1
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 1 Accounting for Share Capital. Accounting for Share Capital MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) The representatives chosen by the shareholders of the company to manage the affairs of the company are known as ———.
(a) Chairman of the company
(b) CEO of the company
(c) Board of directors
(d) Debenture holder of the company
Ans: (c) Board of directors
(2) Shareholders contribute to the ——- of the company and are considered as ——- of the company.
(a) Capital, real owners
(b) Profit, real owners
(c) Liability payment, profit holders of company
(d) Capital, managers of company
Ans: (a) Capital, real owners
(3) All the affairs of the companies are governed by this law. Name the law ——-.
(a) Companies Act, 2013
(b) Companies Act, 2000
(c) Companies Act, 1932
(d) Companies Act, 2015
Ans: (a) Companies Act, 2013
(4) A company is defined as ——.
(a) An article intangible person/organisation registered under the law
(b) A legal entity with no separate existence
(c) An artificial organisation
(d) All of the above
Ans: (a) An article intangible person/organisation registered under the law
(5) In India, generally the companies are formed under companies Act 2013, except ——-.
(a) Insurance company
(b) Financial institution
(c) Banking & insurance company
(d) Statutory Corporations
Ans: (c) Banking & insurance company
(6) A company can enter into contracts with any other party and open a bank account in its own due to its ——–.
(a) Common Seal
(b) Transfer ability
(c) Separate legal existence
(d) Limited liability
Ans: (c) Separate legal existence
(7) The common seal of the company acts as the ——- of the company.
(a) Share capital
(b) Official signature
(c) Legal document/proof
(d) All of the above
Ans: (b) Official signature
(8) The company being artificial person created by law continue to exit irrespective of the changes in membership and can be terminated only through law identify the highlighted feature of company here.
(a) Separate legal entity
(b) Common seal
(c) Perpetual succession
(d) Both (b) and (c)
Ans: (c) Perpetual succession
(9) On the basis of liability of the members of company, it can classified under —— categories.
(a) Two
(b) Three
(c) Four
(d) Six
Ans: (b) Three
(10) A public company means a company which is —–.
(a) Not a private company
(b) Not a subsidiary of private company
(c) Listed in the stock exchange
(d) Both (a) and (b)
Ans: (d) Both (a) and (b)
(11) Transferability of shares implies ——-.
(a) Shares are freely transferable
(b) Shareholders can transfers shares to their family
(c) The constant of any members is not needed for transfer of shares
(d) Both (a) and (c)
Ans: (d) Both (a) and (c).
(12) The liability of members of this type of company is limited to the amount undertaken by then to contribute at the time of winding up of the company. Identify the type of company ——.
(a) Company limited by shares
(b) Company limited by guarantee
(c) One person company
(d) Unlimited company
Ans: (b) Company limited by guarantee
(13) This section of companies Act, 2013 defines one person company. Identify the section ——-.
(a) Section 2 (61)
(b) Section 2 (64)
(c) Section 2 (62)
(d) Section 2 (66)
Ans: (c) Section 2 (62)
(14) The liability of members of the company limited to the extent of the nominal values of shares held by them is known as ——–.
(a) Company limited by Guarantee
(b) Unlimited company
(c) Both (a) and (b)
(d) Company limited by shares
Ans: (d) Company limited by shares.
(15) The paid-up share capital in case of one person company should exceed more than ——.
(a) Rs 1 Crore
(b) Rs 20 Lakhs
(c) Rs 50 Lakhs
(d) Rs 70 Lakhs
Ans: (c) Rs 50 Lakhs
(16) The document that invites public to invest in the shares of the company is known as ——.
(a) MOA
(b) AOA
(c) Prospectus
(d) MOU
Ans: (c) Prospectus
(17) The time limit for a company to attain its minimum subscription of shares is ——.
(a) 90 days
(b) 120 days
(c) 100 days
(d) 140 days
Ans: (b) 120 days.
(18) The shares which do not enjoy any preferential rights in the payment of dividend or repayment of capital is called ——–.
(a) Cumulative preference shares
(b) Equity shares
(c) Non-convertible preference shares
(d) Participating preference shares
Ans: (b) Equity shares
(19) The amount of capital stated in MOA of the company and is the maximum capital which a company is authorized to issue as share capital is called ——.
(a) Issued capital
(b) Share capital
(c) Subscribed capital
(d) Authorized capital
Ans: (d) Authorized capital
(20) The part of the subscribed capital the company asks the shareholders to pay or calls upon on the shares are called ——.
(a) Nominal capital
(b) Issued capital
(c) Called-up capital
(d) Paid-up capital
Ans: (c) Called-up capital
(21) The journal entry for transfer of application money is ——-.
(a) Share application A/c Or To bank A/c
(b) Share application A/c or To share capital A/c
(c) Share application A/c or To shareholder’s A/c
(d) Both (a) and (b)
Ans: (b) Share application A/c or To share capital A/c
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