Deck 16: Share Forfeiture, Debentures, and Sinking Fund

Question 1

Balance of forfeited share is …….

A)Revenue Reserve
B)Capital Reserve
C)Secret Reserve
D)Security Premium

Answer 1

Capital Reserve

Question 2

The shares of a company only can be forfeited after giving a ………days notice

A)21
B)14
C)7
D)30

Answer 2

14

Question 3

The forfeited shares can be reissued at …………

A)Par
B)Premium
C)Discount
D)All of these

Answer 3

All of these

Question 4

Preference shares cannot be redeemed at ………..

A)Par
B)Premium
C)Discount
D)All of these

Question 5

Which of the following is an example for capital profit?

A)Capital Reserves
B)Security premium
C)Forfeited shares
D)All of these.

Question 6

The allotment of shares in case of oversubscription is called…..

A)Pro?rata allotment
B)Private Placement
C)Offer for sale
D)None of these

Question 7

Security premium account can be utilized for ………….

A)Issuing fully paid bonus shares
B)Write off preliminary expenses
C)Write off underwriting commission
D)All of these

Question 8

. …………..is that portion of issued capital which is applied for by the public.

A)Issued capital
B)Subscribed capital
C)Nominal Capital
D)Paid up capital

Question 9

. ……………is an instrument of acknowledgment of debt.

A)Equity share
B)Preference Share
C)Debenture
D)All of these

Question 10

Debenture represents ………. Of a company

A)Borrowed capital
B)Owned capital
C)Hybrid capital
D)None of these

Question 11

Debenture holders will get ……..

A)Dividend
B)Interest
C)Profit
D)All of these

Question 12

Debenture holders are the ……….of a company

A)Debtors
B)Owners
C)Creditors
D)Borrowers

Question 13

A charge created not on specific assets but generally on all assets is known as………….

A)Fixed charge
B)Floating charge
C)Mortgage
D)None of these

Question 14

. …………..debentures can be transferred only with the knowledge of the company.

A)Naked
B)Mortgage
C)Registered
D)Bearer

Question 15

. ………..debentures are transferable by mere delivery

A)Naked
B)Mortgage
C)Registered
D)Bearer

Question 16

. …………debentures are secured by the assets of the company

A)Naked
B)Mortgage
C)Registered
D)Bearer

Question 17

FCD stands for ……………

A)Fixed Charge Debentures
B)Floating Charge Debentures
C)Fully Convertible Debentures
D)None of these

Question 18

Discount or loss on issue of debenture is a ………….

A)Capital Profit
B)Revenue Receipt
C)Capital Loss
D)Revenue Expense

Question 19

Debentures can be redeemed out of ……….

A)Fresh issue
B)Capital
C)Profit
D)All of these

Question 20

Interest on debenture is ……….

A)Adjustment of profit
B)Appropriation of Profit.
C)Charge on profit
D)None of these

Question 21

Debentures are shown in the balance sheet under the head ………..

A)Secured loans
B)Unsecured loans
C)Provisions
D)Current liabilities

Question 22

After realizing all the investments, the balance in the sinking fund account is transferred to …………

A)Profit and Loss A/c
B)Debenture Account
C)Sinking fund A/c
D)Capital reserve

Question 23

When own debentures are cancelled, any profit on cancellation is transferred to ……..

A)General Reserve
B)Capital Reserve
C)Profit and Loss A/c
D)Debenture A/c