Advantages of Shares

Q.

Who are the real owners of the company?

1. Equity Shareholders

2. Preference Shareholders

3. Chief Financial Officer
4. Chief Executive Officer

Q. The dividend is calculated as a percentage of capital of the company.

1. called-up
2. paid-up
3. issued
4. subscribed

Q.

Equity Shares cannot be issued for the purpose of?

1. Distribution of dividend

2. Cash receipts

3. Redemption of debentures

4. Purchase of Assets

Q.

Dividend payout ratio is equal to ___________ (A) the dividend yield plus the capital gains yield (B) dividends per share divided by earnings per share (C) dividends per share divided by per value per share (D) dividends per share divided by the current price per share

Q.

Explain Any Four Factors Affecting dividend Decision of a Company

Q.

The dividend is calculated as a percentage of which capital of the company?

1. Subscribed Capital

2. Issued Capital

3. Paid up Capital

4. Called Up Capital

Q.

Who bears the loss of the company?

1. Equity Shareholders

2. Preference Shareholders

3. CFO
4. CEO

Q.

What is paid as a dividend to the shareholders?

1. Profit

2. Loss

3. Income

4. Expense

Q.

What are the three types of equity?

Q. Dividend is paid on _______ capital.

1. called
2. paid up
3. issued
4. None of these

Q.

Dvidend is a/an-

1. Charge against profits

2. Appropriation out of profits

3. Either A or B
4. None of these

Q.

The profits that remain after paying the preference dividend fully belong to whom?

1. Equity Shareholders

2. Preference Shareholders

3. CFO
4. CEO

Q. State whether the following statements are True or False.

A partner who provides only capital to the firm is called as nominal partner.

Q. Which of the following receipts is of revenue nature ?

1. Amount borrowed from a bank
2. Compensation received from municipal corporation
3. Amount realized from sale of investments
4. Divided received on investments

Q. is paid as a dividend to the shareholders.

1. Profit
2. Loss
3. Income
4. Expense

Q. Dividends are usually paid on ________.

1. Authorised Capital
2. Issued Capital
3. Called-up-Capital
4. Paid-up-capital

Q.

If there are lesser profits, then the amount of dividend is _________.

1. lesser

2. fixed

3. higher

4. none of these

Q.

Shares are categorized mainly into how many types?

1. two

2. four

3. three

4. seven

Q. Dividends are paid out of ____________.

1. Accumulated Profit
2. Gross Profit
3. Profit after Tax
4. General Reserve

Q.

Q. Shares are categorized mainly into types.

1. two
2. three
3. four
4. five

Q. Which of the following helps analyzing return to equity shareholders?

1. Return on Assets
2. Earnings per Share
3. Net Profit Ratio
4. Return on Investment

Q. How retained earnings lead to increase in the market price of the equity shares of a company? Explain with Examples.

Q. The alternative use of retained earnings is based on ______________.

1. Internal-yield criterion
2. Long-run criterion
3. External-yield criterion
4. Short-run criterion

Q. The cheapest source of finance is _____.

1. Debenture
2. Equity share capital
3. Preference share
4. Retained earning

Q. What do you mean by appropriation of profit. What does the word appropriation mean in appropriation of profit

Q. Realization loss is transferred to ________.

1. Equity shareholders a/c
2. Preference shareholders a/c
3. Creditors a/c
4. None of these

Q. In order to calculate EPS, Profit after Tax and Preference Dividend is divided by ________________.

1. m< of Equity Shares
2. Number of Equity Shares
3. None of the above
4. Face Value of Equity Shares

Q.

why the % total of assets liabilities of common size balance sheet should be 100.

Q. Increases in owners equity arising from increase in assets received in exchange for the delivery of goods or rendering of services to customers is termed as ________.

1. Revenue
2. Gain
3. Expenses
4. Loss